Morocco and the the world economic crisis.

While some countries are suffering very clear signs of the global economic downturn, the Moroccan economy is sending mixed messages.

The official line expressed by the Moroccan Finance Minister, Salahedine Mezouar, is that the Moroccan economy remains resilient despite the global downturn. The minister, speaking in Brussels at the second meeting of Euro-Mediterranean Finance Ministers (UFM/Ecofin) and the 9th ministerial meeting of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), said the resilience was thanks to the stability of the macroeconomic framework, the solidity of the financial sector and the efficiency of the supervision and regulation system.

Mezouar urged European partners to provide a coordinated and joint solution to the crisis, adding that Morocco is carefully following policies developed by the EU in terms of re-launching growth and employment. The minister also called on the European party to preserve and increase public aid to development and avoid protectionist legislations.

Morocco's post-crisis policy is based on diversifying sources of growth through stepping up exports and foreign direct investments and promoting infrastructure programmes and human development, Mezouar said.

Foreign exchange in services achieved $1.73bln surplus at end May

According to Morocco's exchange rate monitoring body, Office des Changes, foreign exchange in services achieved $1.73bln surplus at end May

Morocco's foreign exchange in services, which encompasses tourism, transport, communication and call centers, achieved a surplus of about 14 billion dirhams (around 1.7 billion dollars) at the end of May, against 18.8 billion dirhams last year.

Services'receipts reached 34.4 billion dirhams, against 38.6 billion last year, that is a 10.9% drop. Expenses increased by 3.1% to reach 20.4 billion dirhams, the Rabat-based State-run office said.

Travel receipts slashed by 16.6% to be established at 17 billion dirhams, at the end of May, against 20.4 billion dirhams last year, the office said, noting a 1.4% drop in travel expenditures which reached 2.88 billion dirhams.

Figures published by The office show that travel balance generated a surplus of 14.14 billion dirhams against 17.48 billion dirhams last year.

Services of transport, communication and call centers yielded revenues amounting to 6.1 billion dirhams (-10.3%), 2.2 billion dirhams (+1.7%) and 1.2 billion dirhams (+3.1%) respectively.

Remittances of Moroccan expatriates shrunk by 13.8% to stand at 18.3 billion dirhams at the end of May, against 21.2 billion last year, the office noted.

The office underlined a 30.7% drop in investments and foreign loans, which reached 11.4 billion dirhams, against 16.5 billion in the previous year. Direct investments contributed 84% to the overall receipts.

The Good News.

Morocco's imports of crude oil in the first five months of 2009 reached 5,44 billion dirhams (674 million dollars), that is a 62% slump compared to the same period of last year. The volume of imported crude oil, at the end May, also retreated by 25.2% to stand at 1,94 million tonnes.

Besides the decrease in volume, this fall is due to the decline of prices in the international markets. The average price of an imported tonne of crude oil declined to reach 2,800 dirhams at the end of May, relative to 5,514 in the same period last year.

This situation has contributed to a 38.7% drop of the imports of energy products, which reached some 18,2 billion dirhams. Energy products hold the fourth rank in Morocco's total imports with a contribution of 17.1%. They ranked first at the end of May 2008.

The Bad News

Morocco's exports of phosphates and by-products reached by the end of May 7.4 billion dirhams (1 dirham = 0.124550 $), that is a drop of 62.2% compared to the same period a year before, and accounted for 49.9% of the goods' exports decrease (-35.1%).

Official figures show that the share of phosphates and by-products in the country's exports, which reached 46 billion dirhams, fell by 16.1% against 28% during the first five months of 2008. Phosphates' sales totalled 2.8 billion dirhams, declining by 52.9%, while the exported volume shrank by 67.7% (1.82 million tonnes).

The exports of Phosphoric acid and organic and chemical fertilizers generated respectively receipts of 3 billion dirhams (-60%) and 1.6 billion dirhams (-74.7%).

All groups that export goods abroad made poor performances with the exception of consumer goods that stagnated at 14.7 billion dirhams.

The goods imports plummeted by 20%, reaching 106.4 billion dirhams against 133 billion dirhams a year earlier.

Services exports rose by 3.1%, standing at 20.4 billion dirhams instead of 19.8 billion dirhams in 2008. The trade balance of goods and services registered a deficit of 40.1 billion dirhams (+13.1%).

Europe remains Morocco’s top trade partner with 61.9% of its overall exchanges.

Tags: Moroccan Morocco Fes, Maghreb news