Morocco's GDP to post estimated 4.4% growth in 2004

Morocco's Gross domestic product (GDP) is expected to grow by an estimated 4.4% by end of 2004, which is "a year of transition towards a significant economic growth" according to the Centre Marocain de Conjoncture (CMC).

The 2003-2004 farming performance is one of the main reasons of this impetus, the center goes, explaining that with a 8 million ton yield of cereals and an appreciable behavior of sectors like cattle breeding and fruits and vegetables, farming's added value should progress by 6.5% against 2003.

The mining sector, which has had a dull 2003 performance, is expected to regain momentum this year, the CMC goes, adding that the added value of the construction and public works sector should score a 7.5% rise.

According to the CMC, the growth of the tertiary sector, which could reach 2,6 PC, should benefit relatively well from households demand, a significant redeployment of tourism and a foreseeable expansion of telecommunications.

It is also expected that internal demand for goods and services will increase by 7%, the same source said, noting that the rise in households demand is due to creation of new jobs and the rethinking of the minimum wage, decided in mid-2003.

The center said despite the restrictive aspect of the current finance law, which reflects public authorities' determination to preserve macro-economic balance, these trends will cause the global budget deficit to reach 3.8% of the GDP.

As far as prices are concerned, the Centre Marocain de Conjoncture foresees a 2% rise in the living cost indicator.