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In the January 2010 Issue of Property Investor News
Egypt & Morocco Review
Egypt and Morocco are two locations which have proved to be rising stars in the global property market over the last few years. So how has the global recession affected them? Has the fact that they are insulated to some extent from the worst ravages of the problematic financial markets proved to be an advantage or not? In this report we will examine prospects for property investment in both countries.
Morocco
First let us look at the investment background in Morocco. For many years Morocco suffered from a weak economy based on agriculture, but over the last decade the government has made positive attempts to diversify it with industrial, commercial and tourist development. The latest government figures suggest the economy grew by 5% in 2009. However, there has been a severe slowdown in new industries such as textiles, motor manufacture and electronics. Government figures show the country produced 10m tonnes of grain last year - the best harvest for 30 years, which enabled agriculture to contribute 20% to GDP.
In contrast two very important sources of foreign exchange - tourism revenues and remittances sent from Moroccans living abroad - declined by 15% in 2009. Government figures show that although tourist numbers increased again in 2009 (to approximately 7m) tourists stayed for fewer nights and spent less money during their stay.
Commentators suggest that the Moroccan economy is well placed to weather the global economic crisis due to strong fundamentals - a budget surplus, low inflation and low public debt. Government plans to stimulate the economy this year include cutting income taxes, increasing the salaries of public employees and continuing to invest in new roads, railways and ports. The latest (December 2009) report from the Moroccan Central Bank (Bank Al Maghrib) suggests the economy will grow 3-4% in 2010.
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