RABAT: Morocco’s budget deficit rose to 5.6 percent of its Gross Domestic Product (GDP) in 2011 and may stand at the same level in 2012 if the average price of crude oil does not exceed $100 a barrel, a government minister said on Tuesday.
“The budget deficit stood at 5.6 percent in 2011. It’s higher than the previous year,” Mohamed Najib Boulif, Minister in Charge of General Affairs and Governance told Reuters.
Last year, the central bank twice revised the budget deficit forecast for 2011 from an initial 3.5 percent to a 5-5.5 percent range. In 2010, the budget deficit stood at 4.5 percent of GDP that was worth 779.13 billion dirhams ($89.62 billion).
“We may match in 2012 the same budget deficit recorded last year based on an oil price at $100. We will however try to bring it lower,” Boulif added.
He was speaking at the end of a cabinet meeting that approved the new government’s platform and which will be unveiled before parliament on Thursday.
The central bank has also trimmed Morocco’s GDP growth forecast for 2011 to between 4 and 5 percent from a previous 4.5-5.5 percent range. It forecasts an economic growth in the range of 4-5 percent for this year.
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