The IMF on Thursday hailed Morocco, saying the kingdom "has maintained macroeconomic stability during the past decade."
However, in its statement, the IMF noted that growth has been "insufficient to reduce poverty and unemployment." In addition, growth is still volatile because of the dependency of agriculture to rainfalls.
On a mor positive note, the IMF said macroeconomic conditions remained strong last year. Growth increased to 5.5 percent because of an exceptionally good cereal production, while non-agricultural growth showed signs of revival.
Inflation was below 2 percent and the external position strengthened further.
Macroeconomic conditions are predicted to remain broadly unchanged in 2004. Under assumptions of normal agricultural production, overall GDP growth would drop to 3 percent, it reported. The external position is likely to remain strong with external reserves projected at the equivalent of 10 months of imports and the current account surplus at 2.3 percent of GDP. Inflation should remain subdued.
Because of expected proceeds from privatization, mainly the sale of additional government shares in Maroc Telecom, the debt to GDP ratio should decline further in 2004, IMF conveyed. (menareport.com)
© 2004 Mena Report (www.menareport.com )