Morocco expects 6.7 percent growth rate in 1999

Morocco is expecting a growth rate of 6.7%, spokesman of the government, Khalid Alioua announced on Thursday.

This rate will be achieved thanks to the good harvest of 1998, Alioua told the press at the end of a weekly government council meeting in Rabat.

He explained that Morocco's exports increased by 10% in 1998, and tourism receipts and the remittances of Moroccan expatriates jumped by 14 and 6% respectively. The current account deficit stood at 0.4% compared to 1% in 1997, he added. During the same year (1998), inflation remained limited at 2.8% and budget receipts posted an increase of 6.2%.

"All these indicators herald that the 1998-99 fiscal year will be well under control," Alioua said.

He urged all members of the center-left government, headed by Abderrahmane Youssoufi, leader of the Socialist Union of Popular Forces, to respect the terms of the 1998-99 budget to avoid an increase in expenditures.

Alioua stated that foreign investments in Morocco remain modest, posting $500 million against $1.2 billion in 1997. The spokesman imputed the decrease to the international situation, especially the crises in Southeast Asia and Russia.

Alioua announced that Prime Minister Youssoufi decided to hold a government council meeting that will examine Morocco's economic and financial situation and prepare the 1999-2000 budget.

Morocco's fiscal year runs from July to June to enable the appropriation bill drafters take into account the state of the cereals harvest and agriculture in general.

Agriculture, which accounts for around 20 % of the GDP and employs nearly half of an estimated 10-million workforce, relies mainly on rain.