MOROCCO ECONOMIC HIGHLIGHTS

UNCLAS SECTION 01 OF 02 RABAT 000961 SIPDIS SIPDIS DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL STATE PASS USTR FOR DOUG BELL STATE PASS USAID FOR JENNIFER RAGLAND USDOC ITA/MAC/ANESA FOR NATE MASON USDOC FOR FSC/OIO AND CLDP USDOL FOR ILAB PARIS FOR ZEYA LONDON FOR TSOU ROME FOR ROSE E.O. 12958: N/A TAGS: ECON ECPS EAGR ELAB MO SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS -------------- Strong GDP Growth -------------- ¶1. Overall GDP grew by 5.7 percent annually at the end of the first quarter of 2006, while non-agricultural GDP grew by four percent, a consistent figure over several quarters. A report by the Moroccan Government's High Planning Commission said GDP was helped by strong performance in construction, infrastructure and public works. The two major stock indices, the Masi and Madex, grew 33 and 35 percent, respectively, in the first quarter of 2006, outpacing growth for the entire last year. -------------- Unemployment at 35-Year Low? -------------- ¶2. Unemployment has fallen below ten percent for the first time in 35 years, according to official GOM figures released by the Moroccan High Planning Commission (HCP). The HCP said the unemployment rate was 9.8 percent in the first quarter of 2006, compared to 11.3 percent in the same period last year. Unemployment in urban areas fell to 15.4 percent from 19.2 percent last year, and in the rural areas it rose to 3.9 percent from 3.3 percent. The report counted 11,128,000 economically active people, 26.1 percent of whom are women. The economically active Moroccan population is divided almost equally between urban and rural areas, 5,686,000 and 5,442,000 respectively. People 15-24 and 25- 34 bear the highest rate of unemployment, with 15.3 percent and 14.2 percent respectively, compared to only 6.1 percent for people 35-44 and 2.6 percent for those 45 and over. However, labor leaders consistently report to Emboffs that these official numbers are far below the actual unemployment rate. -------------- Internet Subscribers Double -------------- ¶3. Morocco had 315,000 internet subscribers as of March 31 2006, an increase of 20 percent since the beginning of the year and more than double the existing number at the end of March 2005. There were nearly 13 million mobile phone subscribers in Morocco at the end of March, a four percent increase for the quarter and 1.3 million fixed lines, unchanged from the beginning of the year. -------------- Cereal Production Also Doubles -------------- ¶4. Cereal production (wheat and barley) for the 2005/2006 agricultural season is expected to reach 8.6 million tons, more than double the previous year's production of 4.1 million. The 2005/2006 figure is 44 percent higher than the average of the last five years, due mostly to above-average and well-timed rainfall. Rainfall as of May 8 was 364mm, compared to a five-year average of 347mm. -------------- -------------- Tourist Revenues and Remittances Hit All-Time Highs -------------- -------------- RABAT 00000961 002 OF 002 ¶5. Tourist revenues (tourist expenses and bank transfers received by tourist operators) totaled $1.15 billion during the first quarter of 2006, a 16 percent rise compared to the same period last year and 48 percent higher than the annual first quarter average for 2001 through 2005. Remittances by Moroccan expatriates rose by 11.2 percent in the first quarter of 2006 compared to the same period in 2005, reaching $1.3 billion. This figure is 26 percent higher than the average for the previous five years. -------------- Searching for Love? -------------- ¶6. According to a Google study published in The International Herald Tribune, Moroccans are among the most love-searching people in the world, at least among internet users. The study on which nations search the internet for what revealed that Moroccans top the list of people who most frequently search on the word "amour," French for love. RILEY