Economic group downgrades 2001 growth rate forecast

The ministry of finance has downgraded initial forecasts that the 2001 growth rate would stand at 8.1% with an increase of 43% of the agricultural added value.

According to the Moroccan BMCE banks, economy will record a 6.5% growth rate in 2001, supported by the 5% devaluation of the Moroccan Dirham decided last April to enhance economic competitiveness. The GDP downgrading is ascribed to drought and the slowing of the Moroccan economy.

It is also scheduled that inflation, calculated on the basis of the evolution of the living cost index, will not exceed 2.5%.

Meanwhile, the trade balance will improve while tourism receipts improved by 22.5% and remittances of Moroccans settled abroad grew by 11% to compensate the trade deficit and re-balance the trade balance.

BMCE banks also reports a consolidation of Moroccan hard currency reserves and of investments while investment rate will exceed 23%.