Morocco’s economic growth slows to 2.2%

Morocco’s economic growth slows to 2.2%

By Massoud Derhally

Tourism revenue declined in the first quarter.

Morocco’s economic growth in the first quarter of the year slowed to 2.2 percent compared to 4.7 percent during the final quarter of last year, on lower agricultural output because of a shortfall in rain, the continuing effects of economic and financial crisis in the euro zone area, and a decline in tourist revenue and foreign investment flows, Al Hayat reported.

Agricultural production fell 11.7 percent, while industrial output fell to 2.8 percent from 5 percent as a result of a decline in Moroccan exports of garments, mechanical and electronic goods to European markets, Morocco’s main trading partners, the newspaper reported.

The tourism industry contributed 1.6 percent less to the economy, according to the newspaper.

Household consumption fell to 1.9 percent as a result of lower agricultural production and an increase in unemployment to 10 percent from about 9 percent a year ago.

The north African country’s economy is projected to slow to 3.7 percent this year from 4.3 percent last year, according to the International Monetary Fund. Inflation is estimated to increase to 2 percent from 0.9 percent a year ago.


Posted on May 14, 2012, in Business, Morocco News and tagged , , . Bookmark the permalink. Leave a comment.

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