02/02/2007
Morocco’s statistical institute (HCP) announced that expected economic growth for 2007 is 3%, downgrading its previous expectations of 3.6% due to a poorer agricultural harvest affected by drought, MAP reported on Thursday (February 1st). The forecast is based on a medium crop year and inflation of 1.5% in 2007 compared to 2006. HCP foresees strengthening of non-agricultural sectors by 5.5%, up from 5.2% in 2006. Given the poor forecasted agricultural harvest for 2007 and expectations of an increase in crude oil prices on international markets, inflation is more likely to remain in the 3-4% range, which will further depress real economic growth. (MAP, HCP)