Morocco's GDP posted 6.5 % jump in 1998, report

Morocco's Gross Domestic Product (GDP) posted a 6.5 % increase in 1998 against a 2.3 % decrease in 1997, said a report by the Bank of Issue.

The report --submitted Wednesday to King Mohammed VI by Mohammed Seqat, governor of Morocco's central bank, Bank Al-Maghrib-- attributed the increase to the improvement of the agricultural sector following abundant rain in the 1997-98 agricultural campaign.

The positive evolution of the sectors of services, the increase of consumption and the expansion of tourism also contributed to the rise in GDP, the report said, deploring the adverse international context which negatively impacted Morocco's exports.

The deficit of the country's trade exchanges deteriorated by 22.1 % because of an 8.6 % increase in imports compared to a slight jump of 3.9 % of exports.

The report noted that the tourism sector posted a 19.4 % increase in receipts, while the remittances of Moroccan expatriates rose by 6.6 %.

The deficit of the current balance of payments was curbed to 0.1 % of the GDP thanks to a surplus in the inflow of private capital. Despite the payment of external debt servicing, the balance of payments recorded a surplus of 2.3 billion dirhams.

Morocco's currencies reserves can cover six months of goods imports, the report said.