International Monetary Fund Praises Morocco’s Economic Performance

Morocco Property Report 5th August 2008

IMF Managing Director calls Morocco “a pillar of development in the region”…

Morocco’s Economy: Performing Well

In a statement released this morning, International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn called Morocco “a pillar of development in the region” and congratulated King Mohammed VI and the Central Bank on Morocco’s continued strong economic progress and effective management of monetary policy.

In spite of an increasingly challenging global economic climate, Morocco experienced nonagricultural GDP growth of 6.6 percent in 2007, and the IMF expects continued nonagricultural expansion of the Moroccan economy.

In a report issued earlier this week, the IMF noted that Morocco’s financial sector is “sound and resilient to shocks,” and that the “remarkable fiscal consolidation efforts of recent years” have allowed the Moroccan economy to absorb the impact of difficult international economic conditions and increasing global prices for essential commodities such as petroleum and energy.

“The IMF’s report highlights the ambitious and multi-faceted economic reforms that have been in place for years now in Morocco,” said Ambassador Aziz Mekouar, Morocco’s ambassador to the US, during a press conference on Wednesday. “The results of these reforms are the much needed economic growth and stability which benefit all segments of Moroccan society.”

Ambassador Mekouar noted that among the indicators of Morocco’s economic progress are its Free Trade Agreements with key economic partners, including the United States, which open tariff-free Moroccan goods to a market of over 1 billion people worldwide.

International economic experts recognize that Morocco’s exemplary economic performance is beneficial not only to Moroccans, but also for the nearly 90 million people who live in North Africa, a region also known as the Maghreb.

“Though the five countries of the Maghreb face considerable economic challenges, there is great potential for substantial economic progress and prosperity throughout the Maghreb region,” Ambassador Stuart Eizenstat, former US Ambassador to the EU and Deputy Secretary of the Treasury during the Clinton Administration, told reporters during the press conference. “Morocco stands out as a model of economic reform for the region and for other developing countries.” Ambassador Eizenstat was the leading advocate of the US-North Africa Economic Partnership, which was launched in 1999 and is more commonly referred to as the “Eizenstat Initiative.”

“Morocco stands out as a model of economic reform for the region and for other developing countries. The kind of economic progress that Morocco has made, and which the rest of the Maghreb has the potential to accomplish, is the best antidote to the new threat of terrorism in the region,” Ambassador Eizenstat said.

In what are known as Article IV consultations, the IMF annually evaluates and reports on its member countries’ economic progress. An IMF mission traveled to Morocco in May of this year and met with senior government officials, the Central Bank, and representatives from parliament, the private sector, and labor unions.

Source: Moroccan American Trade and Investment Center/ www.marketwatch.com

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