Morocco's economic growth slows to 2.2%

Lower agricultural output, the euro zone crisis and declining tourism contribute
Morocco's economic growth slows to 2.2%
Tourism revenue declined in the first quarter.
By Massoud A. Derhally
Mon 14 May 2012 12:08 PM

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.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.