Reforms spur growth in Morocco

The reforms operated by Morocco in the 1990s have enabled it to double economic growth in the country, the London-based business daily Financial Times wrote.

Reforms introduced throughout the 1990s had led to a government forecast of 5% growth outside the agricultural sector in 1998-2003, the daily said in a 6-page survey on Morocco.

This would have meant doubling the 1990-97 average of about 2.8%, which reached 3.4% in 1998, the paper said, adding that tough fiscal control has this year allowed the government to reduce the budget deficit from 3% to 2.3% of the GDP, as a result of an 11.3% rise in tax receipts and success in reducing domestic and foreign debt.

The Government has set the goal of reducing the deficit to 2% in 2000.

The daily notes that the main weakness of the Moroccan economy lies in its reliance on the erratic agricultural sector.

Agriculture accounts for 18% of the GDP, an average increase of 1.9% in 1990-97, though productivity is subject to frequent drought, which this year cut production levels by almost 50%, the paper said.

According to the Financial Times, the government is aiming to achieve a 5.5% annual growth in advance of the disappearance of industrial tariff barriers for European exporters.

"This level of growth will be adequate for us to retain our competitiveness," Economy and Finance Minister Fathallah Oualalou told the daily.

Morocco emphasizes the importance of legal and administrative reform as key measures to prepare the economy for the impending free market, the daily said.