Morocco's economic performance was remarkable in 2007, report

Morocco's economic performance in 2007 was remarkable due to both favourable international conditions and macroeconomic modernisation undertaken by the north African country, according to a joint report by the African Development Bank and the Organisation for Economic Co-operation and Development .

Washington - Morocco's economic performance in 2007 was remarkable due to both favourable international conditions and macroeconomic modernisation undertaken by the north African country, according to a joint report by the African Development Bank  and the Organisation for Economic Co-operation and Development .

    The report, which was presented on Thursday to the American congress, noted that financial sector reform and stabilisation of government spending have made it easier for the country to attract financial investment since 2001, amounting to an average 2.9 per cent of GDP a year.

    Recommending the continuation of modernisation of government services and the strengthening of the institutional and legal framework, the report notes that the 2.2 per cent real growth recorded in 2007 fell short of the 3.1% target due to a nearly 18% drop in agricultural production. It estimates growth in 2008 to be 6% if the harvest is average.

    As regards non-agricultural activity, it expanded 5.6% in 2007 as against 5.9 per cent in 2006 and 5% in 2005, and is expected to reach +6.1% this year, driven by industry, construction and telecommunications.

    According to the report, industrial activity growth speeded up 5.5% from 3.9% in 2006, due to high internal demand caused by the free trade agreements and the European Union’s protection measures against Chinese goods.

    The report also notes that nearly 6.3 million tourists visited Morocco between January and the end of October 2007, a 14% year-on-year increase. This, the reports says, increased tourism revenue 13% to MAD 49.5 billion from over MAD 43 billion in the same period in 2006.

MAP