According to the results of a survey carried out among Moroccan industrialists, the manufacturing activity diminished during the last six months of 1999 compared to the corresponding period of 1998. Even though the manufacturing sector has been growing in 1999 by 2.2%, this is at a much-decreased rate from that of 1998. This downward tendency has been accompanied by lower consumer prices for industrial products, the Moroccan daily L'Economiste reports.
The majority of the entrepreneurs sighted two main developments as being responsible for the growth-rate decline. The first explains that even though the 1999 world economy was favorable for the sector in general, the Moroccan economy's rickety, below average performance affected the industrial production translating into a decrease in domestic demand. The other main factor that has been identified as being responsible for diminished growth-rates is a decrease in market prices.
However, according to L'Economiste, the mechanic and electronic industries expanded last year by 6.6% and the manufacturing industry by 3.3%. Despite this positive development, the textile and leather industries could not translate this into profits and thus the negative growth was realized.
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