São Paulo – The Moroccan government has lowered its economic growth forecast for 2012, according to the local press. In a statement, the Moroccan minister of Economy and Finance, Nizar Baraka, claimed that the country’s economy should grow by 4.2% this year. The previous forecast was 5.5%.
The minister claimed that the lower rate of growth will be a result of the world economic crisis, especially among trade partners in Morocco, which are European. Scarce rains during autumn and winter in the country should affect food production and thus the Moroccan finances.
Over the last five years, the Moroccan Gross Domestic Product (GDP) grew by an average of 4.8%. In 2011, the rate should be 4.7%, but the forecast is subject to change.
The government of Morocco, elected in November, set economic growth and job creation as its priorities. The agenda laid out by the government during the campaign was based on an average annual growth rate of 5.5% from 2012 to 2016.
Baraka stated that the government is working to maintain subsidies to staple products. The country usually provides subsidies to keep the prices of staples such as wheat flour and sugar down.
*Translated by Gabriel Pomerancblum
