News

Moroccan GDP growth forecast scaled back

22 de julho de 2016

The country’s government has revised down its projection for 2016 from 3% to 2% due to a belated start of the rainy season, which is poised to make crops shrink by 70%.

Rabat – The Moroccan government has revised down its growth forecast for this year from 3% to 2%, minister of Economy and Finance Mohamed Boussaid said last Thursday (21) during a presentation on the national economy to the Regency Council in Rabat.

The minister said the original forecast, dating from October 2015, has been redone because rainy season started later than expected, which should cause the 2016 harvest to be 70% smaller than 2015’s, i.e. down from 11.5 million tons to 3.3 million tons.

Boussaid remarked that the GDP projection has changed by only 1 percentage point, which he claimed is testament to how solid the local economy is, and to its ability to accommodate the repercussions of the drought, with development efforts concentrated in other areas of the economy.

He also said Morocco should see a fiscal deficit equivalent to 3.5% of Gross Domestic Product (GDP) this year, down from 4.3% in the last one. The current-account deficit is expected to be 1.5% of GDP this year – it was 2.2% in 2015.

The minister stressed that remittances by Moroccan expatriates have increased, as have tourism, fiscal and non-fiscal revenues.

*Translated by Gabriel Pomerancblum