Morocco's '07 Growth Seen Falling Sharply on Drought
Date: 15-Jun-07
Country: MOROCCO
"In the view of such circumstances, the High Planning Commission is in a position to predict a gross domestic product rate of 1.6 percent in 2007," the Commission said in a statement.
Agriculture output, which accounts for up to 17 percent of Morocco's GDP, swings sharply on cyclical droughts.
Farming production was forecast to shrink by 17.2 percent this year after a 21 percent rise in 2006 when the cereals harvest came in at 9.3 million tonnes -- the highest in 10 years.
The government expected the economy to grow by 3.5 percent this year on the assumption of a cereals crop of 6.0 million tonnes.
The International Monetary Fund said this week that Morocco's growth would slow to 2.5 percent because of the drought.
The Commission expects inflation to rise to 2.6 percent this year from 2.0 percent last year. The government envisages an inflation rate of 2.0 percent this year, unchanged from 2006.
The Commission's leader is appointed by the king but is seen as independent from the government.