01/10/2007
Morocco's GDP growth rate fell to 1.7% in the second quarter of 2007, a significant decline from the 9.3% growth rate the country enjoyed during the same period in 2006. The High Commissariat for Planning released figures on Sunday (September 30th) revealing the drop was due largely to a 20.9% drop in agricultural output following prolonged drought. Agricultural output accounts for 21.7% of Morocco's GDP but employs close to 40% of the population and fluctuations in weather conditions have a significant effect on unemployment, which stood at 9.4% in the second quarter of the year. Non-agricultural growth, however, decelerated only slightly, to 5.5% from 5.7% in the same period of 2006, due primarily to a decline in food-related industries.
In related news, Morocco's foreign trade regulator announced that the country’s trade deficit flared up 26.4% between January and August 2007 reaching $10.8 billion, up from $8.4 billion last year. The office ascribed the deficit to the large volume of imports driven by increased imports of food, goods and energy.