VZCZCXRO8265
RR RUEHLMC
DE RUEHRB #0261/01 0461436
ZNR UUUUU ZZH
R 151436Z FEB 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 2797
INFO RUEHCL/AMCONSUL CASABLANCA 1232
RUEHAS/AMEMBASSY ALGIERS 3720
RUEHTU/AMEMBASSY TUNIS 8614
RUEHNK/AMEMBASSY NOUAKCHOTT 2972
RUEHFR/AMEMBASSY PARIS 3986
RUEHRO/AMEMBASSY ROME 1419
RUEHMD/AMEMBASSY MADRID 5340
RUEHLO/AMEMBASSY LONDON 2767
RUEATRS/DEPTTREAS WASHDC
RUCPDOC/USDOC WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/USDA FAS WASHDC 0846
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 000261 
 
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 ELAB ENRG KIPR SENV MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
----------------------------- 
Government Raises Fuel Prices 
----------------------------- 
 
¶1.  The Government of Morocco (GOM) raised prices on some 
fuel products on Feb. 9 in a bid to relieve pressure high 
international oil prices are putting on the state's subsidy 
mechanism.  Premium grade gasoline rose by 1.5 percent to 
$1.17 per liter and diesel fuel rose by 12 percent to $1.03 
per liter.  The government raised prices twice in 2005, as 
oil imports for the year were 65 percent higher than in 
¶2004. 
 
------------------------------------ 
GOM Puts Joblessness at 11.5 Percent 
------------------------------------ 
 
¶2.  The GOM's High Planning Commission (HCP) announced that 
unemployment rose by 1.1 percent in the fourth quarter of 
2005 compared to one year earlier, reaching 11.5 percent. 
Urban unemployment at the end of 2005 stood at 19.4 percent, 
up from 18 percent one year earlier, and rural unemployment 
was 3.6 percent, up from 2.5 at the end of 2004.  The GOM 
estimates the jobless figure for urban educated youth in 
their twenties at around 26 percent, while labor union 
sources in Casablanca estimate the rate to be around double 
the overall urban unemployment rate, or around 39 percent. 
Meanwhile, the number of economically active people grew by 
3.9 percent in 2005 to over 11 million. 
 
---------------------------------- 
GOM Takes on Public Service Reform 
---------------------------------- 
 
¶3.  Over 38,000 of Morocco's 540,000 civil servants have 
accepted the GOM's offer to retire early in exchange for 
generous severance packages, part of the GOM's public 
service downsizing campaign.  The Ministry of Public Sector 
Modernization has also altered work hours to reduce traffic 
and make public services more accessible.  Additional 
reforms include competitive exams for hiring, overhaul of 
the promotions policy, and development of more in-house 
training.  Morocco spends almost 13 percent of GDP on public 
service wages, which have increased 7.8 percent per year 
over the last eight years, roughly twice the economic growth 
rate.  Reforms are designed to address widely held 
criticisms of the public service, including excessive 
centralization of decision-making, lack accountability among 
management, rigid and lengthy procedures and arbitrary 
implementation of regulations. 
 
-------------------------- 
2005 Growth of 1.6 Percent 
-------------------------- 
 
¶4.  Morocco's GDP growth for 2005 was in the range of 1.6 
percent, significantly short of the government's target of 
three percent.  Non-agricultural GDP grew by 4.7 percent. 
Overall growth was pulled down by poor performance in the 
agricultural sector, which typically accounts for around 15 
percent of GDP.  According to the Ministry of Agriculture, 
the 2005 cereal crop was down 57 percent from 2004 and 35 
percent from the 1999-2004 average, due to both adverse 
weather conditions and a locust attack.  The mining and 
 
RABAT 00000261  002 OF 002 
 
 
energy sectors grew by 5.7 percent thanks to the good 
performance of phosphates. 
 
----------------------------------- 
Patent Applications Hit Record High 
----------------------------------- 
 
¶5.  The Moroccan Patent and Trademark Office (OMPIC) 
received 660 patent applications in 2005, an 18 percent 
increase over 2004 and a new record.  Twenty percent of 
these applications were filed by Moroccans.  OMPIC received 
over 6,000 requests for trademark registration in 2005, 
again 18 percent higher than in 2004 and also a new record. 
Nearly 80 percent of trademark applications were made by 
Moroccan firms. 
 
------------------------------------- 
FTA Website Attracts 1.8 Million Hits 
------------------------------------- 
 
¶6.  A website for the U.S.-Morocco Free Trade Agreement 
hosted by the American Chamber of Commerce in Casablanca and 
financed with BFIF funds attracted 1.8 million hits in 2005. 
Fifty-seven percent of the site's 35,000 individual visitors 
were from the United States and 31 percent from Morocco. 
 
--------------------------------- 
New Wind Power Project in Tangier 
--------------------------------- 
 
¶7.  Five companies, including General Electric, have been 
pre-qualified to submit bids to build a 90 megawatt (MW) 
wind-power farm near the northern city of Tangier.  The 90 
MW capacity will be added to an existing 50 MW, turning the 
Tangier site into the largest wind-power park on the African 
continent.  The $220 million investment will avoid the 
emission of 470,000 tons of carbon dioxide each year, and 
will save 120,000 tons of fuel.  The GOM also plans to 
create a 60 MW wind farm near the southern coastal city of 
Essaouira.