General GDP growth index for 2019 reached 2.9%, finance minister says

The overall Gross Domestic Product (GDP) growth index for 2019 reached 2.9%, with a satisfactory performance of non-agricultural activities, said, Thursday in Rabat, minister of Economy and Finance, Mohamed Benchaaboun.

The minister, who presented before the Cabinet meeting progress made in the implementation of the 2019 Finance Bill and the prospects for the preparation of the 2020 Finance Bill, in accordance with the provisions of article 47 of the Organic Law on the Finance Bill, said that the reference framework for the preparation of the draft Finance Bill is based enabled Morocco to launch a series of projects and strategies over the last 20 years.

The minister also raised the general economic situation, highlighting the main international and national economic indicators, characterized by a decline in world economic growth to 3.2% in the first half of 2019 from 3.6% in the same period in 2018.

He pointed out that this decline was recorded in the euro zone with which the Kingdom carries out major commercial transactions, noting the increase in oil prices compared to 2016 and 2017.

Regarding the national economy, the minister pointed out that the overall Gross Domestic Product (GDP) growth index for 2019 reached 2.9%, noting the continued improvement in the financing conditions of the national economy with an increase in bank loans and decline in the inflation rate to 0.1% in 2019 from 2.3% in 2018.

He also said that the unemployment rate fell by 0.5% compared to 2018 to 10%, pointing out that despite this slight decline, this rate in urban areas remained at 14.5%.

Referring to the development of the external sector, the minister said that imports grew by 3.2% and exports by 2.7%, resulting in an increase in the trade balance deficit of about 5.2%.

In this regard, he presented a number of indicators, including a 1.4% improvement in automotive exports, 1.2% in textiles and leather exports, 5.1% in agricultural exports, 12% in the automotive industry and 0.6% in the electronics industry.

As a result, the current account deficit in the balance of payments could fall from 5.5% in 2018 to 4.5%, he said.