Morocco earmarks USD 38.5Mn to development projects over 2008-2012

Some USD 38.5Mn have been allocated to development projects over the period 2008-2012 in Morocco compared to USD 11.6Mn over 2002-2007, Prime minister Abbas El Fassi said on Monday.

Rabat - Some USD 38.5Mn have been allocated to development projects over the period 2008-2012 in Morocco compared to USD 11.6Mn over 2002-2007, Prime minister Abbas El Fassi said on Monday.
 

    In a meeting with local press, Abbas El Fassi said these projects will continue at a steady pace particularly in the vital sectors such as roads and motorways, railways, dams, energy and tourism, underlining that the government is determined to honor its commitments despite the fluctuation of oil and foodstuff prices.

    The inter-ministerial committee on investment has approved 62 projects, worth USD 3.7Mn, which will create 15,800 jobs, said the Prime Minister during the meeting, attended by the minister of Economic and General Affairs, Nizar Baraka, and the minister in charge of relations with parliament, Saad Alami.

    These investments, he went on, cover various sectors of activities, notably the automobile industry, electricity, agriculture, food-processing, tourism, chemical and petrochemical industries, aeronautics...etc. He stressed the positive impact of these projects on local economy in general and job creation in particular.

    In this respect, he recalled the downward trend in the unemployment rate, which fell to 9.8% in 2007. This rate has continued its decline, standing at 9.6% in the first quarter of 2008 compared to 10.1% a year earlier. During this year, more than 200,000 new jobs have been created by non-agricultural sectors.

    Underlining that significant efforts have been made in all sectors of activity, the Prime Minister said the average growth rate of GDP is expected to reach 6.5% over 2008-2012. "It is an honorable rate that exceeds the average of 5.2% recorded in the past," he said.

    For the current year, the government expects a growth rate of 6.8% despite an unfavorable international situation.

    The Prime Minister recalled the measures the government has taken to improve the purchasing power of citizens, notably higher wages and reduction of income tax, which will come into force as from July 1st. All these measures will cost the state a USD 2.2Mn budget.
 
    In this respect, he also stressed the significant financial effort in terms of subsidies to basic necessities by the Compensation Fund, whose budget is expected to reach USD 5.5Mn by the end of the year, double the amount allocated under the 2008 Finance bill.

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