Moroccan economic growth rate of 3.5 percent in 2004, higher than expected

Moroccan economic growth rate could stand at 3.5% for 2004, which is a slight rise compared to previous estimates, the High Planning Commissioner said on Wednesday.

The higher performance of the economic growth rate is ascribed by the Commissioner to a 4 percent growth of farming activity and to a 3.5 percent rise of non-agricultural commodities.

Mining production could straighten up thanks to phosphates and by-products output while energy sector could recover in spite of the hike of oil prices.

Industry is also expected to slow down owing to a decrease of chemical and parachemical and metallic production.

Civil service expenses are expected to go up due to a 7.4 percent rise in personnel expenditure, while domestic commodity demand is expected to rise thanks to a rise of civil service expenses of 7.8 percent to be boosted by expenses of administration budgets.

Household consumption is to grow up 5 percent as a result of the improvement of agriculture revenues and a rise of civil servants salaries as well as a moderate 1.8 rise of commodity prices.

Moroccan trade exchanges entailed a 31.8 percent deficit, compared to 2003, induced by consumption goods and crude oil imports, while expatriates remittances and tourism revenues mitigated the trade deficit incidence on current transactions balance. Exports rose a modest 3.8 pc.

First quarter external hard currency assets are expected to cover for a one year commodity imports. Money mass rose 9.5 percent up to end June at the central bank.