The Office of the High Commissioner for Planning Commission (HPC), Morocco's national economic planning institution, announced on 30 June that the rate of economic growth would slow down to 2.6% in 2016, from 4.3% in 2015, due in part to the drop in agricultural production which reached an unprecedented level this year.

The primary sector (agriculture and fishing), representing 15% of the kingdom's GDP, is expected to generate an added value of 1.7% as against 13.2% in 2015.

"2015 would benefit from favourable climate conditions underpinned by a good land and time distribution of rainfall. Therefore, the crop year 2014/2015 will yield a cereal production of about 11 million tonnes, an increase of 62% compared to 2014. The favourable climate would also benefit other non-cereal crops including vegetables and fruits as well as the livestock sector. Taking into account a positive expansion in fishing activities, the primary sector should generate an increase in added value of 13.2%, contributing 1.5point to GDP growth in 2015", the HPC stressed.

According to HPC, non-agricultural activities should increase by 3.1% in 2016, following a growth of 2.5% in 2015. The state and public institutions investments should fall to 28.9% of GDP, against 29.6% in 2015.

Foreign exchange reserves will cover 6.1 months of imports at the end of 2016, versus 5.9 months in 2015, the HPC added, while also expecting a rise of 15% in foreign direct investments during the next fiscal year.

Morocco's public debt will reach 81.2% of GDP in 2016 against 79.6% in 2015