Moroccan government investment plans boost property sector
Morocco’s emergence as a hot property destination for overseas property investors was massively stunted by its booming economy with masses of growth potential. After an economic growth of 5.6% last year, it is on track for a GDP growth of 5.3% this year, on the back of a bumper harvest, which boosted farm incomes and domestic consumption.
According to the international Monetary Fund (IMF) press release received by PANA in Addis Ababa, Morocco is expected to register an almost equal real GDP growth in 2009 with what it achieved in the preceding fiscal year. ‘Despite the world economic slowdown, Morocco’s economic performance has remained solid,’ said Mark Lewis, who headed IMF mission that visited Rabat from November 2-13, 2009.
‘Consumer price inflation will drop to less than 2 per cent in 2009 and the current account deficit is expected to improve, assuming that the recent signs of a rebound continue in the last part of the year, ‘ the mission stated. The country’s fiscal policy will appropriately loosen in 2009 and 2010, reflecting in good part the authorities’ counter-cyclical l measures. Important reforms in the public finance area are ongoing, including tax reforms, and efforts to gradually replace the current system of subsidies by targeted measures to assist the low-income segments of the population.
According to the IMF, Morocco’s Central Bank has responded appropriately to the evolving economic and financial conditions through its interest rate policy and liquidity management tools.
Moroccan government has announced a plan to increase state investment by 20% next year. This investment is to go into some very important places; an investment in the future economic growth of Morocco, to make it an even more promising destination for property investment. Holiday home buyers and property investors alike are expected to snap up property bargains in this almost exotic gateway to Europe.
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