VZCZCXRO9497
RR RUEHLMC
DE RUEHRB #0961/01 1381308
ZNR UUUUU ZZH
R 181308Z MAY 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 3765
INFO RUEHCL/AMCONSUL CASABLANCA 1700
RUEHAS/AMEMBASSY ALGIERS 3984
RUEHTU/AMEMBASSY TUNIS 8874
RUEHNK/AMEMBASSY NOUAKCHOTT 3173
RUEHFR/AMEMBASSY PARIS 4200
RUEHRO/AMEMBASSY ROME 1467
RUEHMD/AMEMBASSY MADRID 5491
RUEHLO/AMEMBASSY LONDON 2944
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/USDA FAS WASHDC 0907
RUEAORC/USCBP WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEAEPA/HQ EPA WASHINGTON DC

UNCLAS SECTION 01 OF 02 RABAT 000961 
 
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 NATE MASON 
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 ECPS EAGR ELAB MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
----------------- 
Strong GDP Growth 
----------------- 
 
¶1.  Overall GDP grew by 5.7 percent annually at the end of 
the first quarter of 2006, while non-agricultural GDP grew 
by four percent, a consistent figure over several quarters. 
A report by the Moroccan Government's High Planning 
Commission said GDP was helped by strong performance in 
construction, infrastructure and public works.  The two 
major stock indices, the Masi and Madex, grew 33 and 35 
percent, respectively, in the first quarter of 2006, 
outpacing growth for the entire last year. 
 
---------------------------- 
Unemployment at 35-Year Low? 
---------------------------- 
 
¶2.  Unemployment has fallen below ten percent for the first 
time in 35 years, according to official GOM figures released 
by the Moroccan High Planning Commission (HCP).  The HCP 
said the unemployment rate was 9.8 percent in the first 
quarter of 2006, compared to 11.3 percent in the same period 
last year.  Unemployment in urban areas fell to 15.4 percent 
from 19.2 percent last year, and in the rural areas it rose 
to 3.9 percent from 3.3 percent.  The report counted 
11,128,000 economically active people, 26.1 percent of whom 
are women.  The economically active Moroccan population is 
divided almost equally between urban and rural areas, 
5,686,000 and 5,442,000 respectively.  People 15-24 and 25- 
34 bear the highest rate of unemployment, with 15.3 percent 
and 14.2 percent respectively, compared to only 6.1 percent 
for people 35-44 and 2.6 percent for those 45 and over. 
However, labor leaders consistently report to Emboffs that 
these official numbers are far below the actual unemployment 
rate. 
 
--------------------------- 
Internet Subscribers Double 
--------------------------- 
 
¶3.  Morocco had 315,000 internet subscribers as of March 31 
2006, an increase of 20 percent since the beginning of the 
year and more than double the existing number at the end of 
March 2005.  There were nearly 13 million mobile phone 
subscribers in Morocco at the end of March, a four percent 
increase for the quarter and 1.3 million fixed lines, 
unchanged from the beginning of the year. 
 
------------------------------ 
Cereal Production Also Doubles 
------------------------------ 
 
¶4.  Cereal production (wheat and barley) for the 2005/2006 
agricultural season is expected to reach 8.6 million tons, 
more than double the previous year's production of 4.1 
million.  The 2005/2006 figure is 44 percent higher than the 
average of the last five years, due mostly to above-average 
and well-timed rainfall.  Rainfall as of May 8 was 364mm, 
compared to a five-year average of 347mm. 
 
--------------------------------------------- ------ 
Tourist Revenues and Remittances Hit All-Time Highs 
--------------------------------------------- ------ 
 
RABAT 00000961  002 OF 002 
 
 
 
¶5.  Tourist revenues (tourist expenses and bank transfers 
received by tourist operators) totaled $1.15 billion during 
the first quarter of 2006, a 16 percent rise compared to the 
same period last year and 48 percent higher than the annual 
first quarter average for 2001 through 2005.  Remittances by 
Moroccan expatriates rose by 11.2 percent in the first 
quarter of 2006 compared to the same period in 2005, 
reaching $1.3 billion.  This figure is 26 percent higher 
than the average for the previous five years. 
 
------------------- 
Searching for Love? 
------------------- 
 
¶6.  According to a Google study published in The 
International Herald Tribune, Moroccans are among the most 
love-searching people in the world, at least among internet 
users.  The study on which nations search the internet for 
what revealed that Moroccans top the list of people who most 
frequently search on the word "amour," French for love. 
 
RILEY