Morocco’s central bank forecasts growth rate to range between 4 and 5% in 2012

RABAT, December 20, 2011 (MAP)

Morocco’s central bank, Bank Al Maghrib, said it expects overall growth rate to be in the range of 4 to 5% in 2012.

In reviewing trends, the bank’s board said that despite the broadly positive trend in external accounts indicators to the end of November, particularly receipts from transfers of Moroccans living abroad, some signs are emerging of the spreading impact of economic slowdown in partner countries.

This is mostly reflected in the gradual deceleration, for several months now, in the growth rate of travel revenues and exports excluding phosphate and derivatives, the bank said.

Under these circumstances, overall and non agricultural GDP growth for the full year 2011 was slightly revised downward, now ranging between 4 and 5 percent instead of 4.5 to 5.5 percent previously.

The Board noted that inflation remained moderate, with year-on-year headline inflation reaching 0.5% in November and core inflation, which reflects the underlying trend in prices, standing at 1.6 percent in November.

The bank decided, given that the central inflation forecast is permanently consistent with the price stability objective and the balance of risks is tilted to the downside, to keep the key rate unchanged at 3.25 percent.