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

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Strong GDP Growth
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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.

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Unemployment at 35-Year Low?
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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.

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Internet Subscribers Double
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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.

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Cereal Production Also Doubles
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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.

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Tourist Revenues and Remittances Hit All-Time Highs
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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.

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Searching for Love?
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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