VZCZCXRO6316
RR RUEHLMC
DE RUEHRB #0039/01 0091710
ZNR UUUUU ZZH
R 091710Z JAN 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 2461
INFO RUEHCL/AMCONSUL CASABLANCA 1068
RUEHAS/AMEMBASSY ALGIERS 3657
RUEHTU/AMEMBASSY TUNIS 8564
RUEHNK/AMEMBASSY NOUAKCHOTT 2927
RUEHFR/AMEMBASSY PARIS 3944
RUEHRO/AMEMBASSY ROME 1407
RUEHMD/AMEMBASSY MADRID 5308
RUEHLO/AMEMBASSY LONDON 2719
RUEATRS/DEPTTREAS WASHDC
RUCPDOC/USDOC WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/USDA FAS WASHDC 0832
RUEAORC/USCBP WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEAEPA/HQ EPA WASHINGTON DC

UNCLAS SECTION 01 OF 02 RABAT 000039 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE 
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL 
STATE PASS USTR FOR DOUG BELL 
STATE PASS USAID FOR JENNIFER RAGLAND 
USDOC ITA/MAC/ANESA FOR DAVID ROTH 
USDOC FOR FSC/OIO AND CLDP 
USDOL FOR ILAB 
PARIS FOR ZEYA 
LONDON FOR TSOU 
ROME FOR ROSE 
 
E.O. 12958: N/A 
TAGS: ECON ELTN SENV MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
REF: A) Rabat 2311 
 
---------------------------- 
GOM Poverty Indicators Decline 
------------------------------ 
 
¶1.  Government of Morocco poverty figures indicate that from 
1999 to 2004 the number of Moroccans living below the 
poverty line - defined as a monthly household income of $187 
for a family of 5.6 people living in an urban setting, or 
$194 for a family of 6.4 people living in a rural setting - 
has fallen from 19 percent to just over 14 percent 
nationwide.  The 2004 statistics indicate that 22 percent of 
rural families fall below this line, while only eight 
percent of urban-dwellers do. 
 
-------------------- 
Slow Growth for 2005 
-------------------- 
 
¶2.  The Moroccan economy grew at a real rate of just 1.2 
percent in 2005, below the expectations of the 2005 Budget 
Law.  However, positive growth was maintained despite poor 
climatic conditions that led to a drop in the agricultural 
GDP of 16 percent.  Moroccan GDP is still heavily dependant 
on agriculture, most of which is rain-fed and subject to the 
vagaries of the weather.  GOM economic planners are trying 
to decrease the country's dependence on rain-fed 
agriculture, making GDP growth less dependent on climactic 
conditions. 
 
---------------------------- 
Tourism Brings in $4 Billion 
---------------------------- 
 
¶3.  Over five million tourists visited Morocco in 2005, a 
five percent increase over the previous year.  Growth 
occurred mostly in traditional markets including France (20 
percent), the UK (52 percent), Spain (28 percent) and 
Belgium (25 percent).  French tourists ranked first with 1.2 
million arrivals, followed by Spain (320,067), Great Britain 
(175,585), Germany (133,458), Belgium (116,505) and Italy 
(107,899).  Tourist revenues reached $4 billion, 
approximately eight percent of GDP. 
 
------------------------------------------- 
Morocco Leads in Clean Development Projects 
------------------------------------------- 
 
¶4.  Morocco has become the first Arab country and the first 
in Africa to register projects with the UN's Clean 
Development Mechanism (CDM), which allows adherents of the 
Kyoto Protocol to purchase carbon dioxide credits to meet 
the greenhouse gas emission reduction targets they agreed to 
under the Protocol (Ref A).  Morocco ratified the Kyoto 
Protocol in January 2002. 
 
------------------------- 
Declining Road Fatalities 
------------------------- 
 
¶5.  Road accident fatalities declined by seven percent in 
the first ten months of 2005, and serious injuries were down 
11 percent.  Transport Minister Karim Ghellab attributed the 
 
RABAT 00000039  002 OF 002 
 
 
decline to a series of measures the GOM has taken to combat 
the problem of high traffic fatalities, including requiring 
medical check ups for truck and public transport drivers, 
increased enforcement of technical inspections and laws 
mandating the use of seat belts.  Ninety-two percent of the 
nearly three million vehicles circulating in Morocco are 
more than five years old.  Accidents kill 4,000 people 
annually and cost the country $1.2 billion. 
 
--------------------------------------------- -- 
Five Million Sheep Slaughtered in Just Two Days 
--------------------------------------------- -- 
 
¶6.  Officials estimate 4.9 million live sheep will be 
purchased and slaughtered during the January 10-11 Eid al- 
Adha holiday.  Sheep are alaughtered and eaten countrywide 
as part of the Eid holiday celebration.  The Ministry of 
Agriculture reports that more than six million head of sheep 
are available on the market this year.  Prices are slightly 
higher than last year, at 32-40 dirhams (US$3.50-4.40) per 
kilo of live beast, meaning an average-sized sheep will cost 
$160, roughly a month's salary for a low-income family. 
Social pressure to purchase a large and costly sheep is 
great, and the annual expenditure is a difficult one for 
many Moroccan families.  The GOM estimates that the Eid 
purchase accounts for 25 percent of the budget an average 
family spends each year on meat.