morocco property investment potential grows on government investment plans
News Posted On: 27 October 2009
Morocco truly is one of the great emerging markets. It is on track for a GDP growth of 5.3% this year, on the back of a bumper harvest, which boosted farm incomes and domestic consumption. This follows economic growth of 5.6% last year.
Economic growth is expected to slow to 3.3% next year -- failing another bumper harvest -- but that is not the important point. The government has announced a plan to increase state investment by 20% next year.
This investment is to go into some very important places; an investment in the future economic growth of Morocco, to make it an even more promising destination for property investment. The money is to be spent as follows (Facts courtesy of Yahoo Factbox):
Agriculture upgrades worth 5.2 billion dirhams are planned for next year, and fisheries projects worth 570 million dirhams.
Industrial zones, business parks: 1.95 billion dirhams.
The justice system will see its budget grow by 36 percent to 3.2 billion dirhams to help push through reforms.
Education budget to grow to 51 billion dirhams in 2010 from 46 billion in 2009.
An emerging market lives or dies on the strength of its ability to reduce poverty and crime, and increase the prevalence of quality education in the population. Thus, this is a massively good sign for the future of Morocco, that it plans to reinvest the profits from economic growth, back into projects that will ensure the economic growth continues long into the future.
Other things to benefit from the increased spending are: the expansion of Jorf Lasfar power station, wind farms in Tangier and Tarfaya, a combined-cycle power station at Ain Beni Mathar and a gas-fired power station at Kenitra, adding a combined 1,200 MW of power. Total (FP.NX - news) investment by state power utility ONE: 10 billion dirhams. Also the state water utility ONEP will boost spending to 4.1 billion dirhams from 3.3 billion to add dams and water treatment plants.
These will increase the prevalence of electricity and drinking water in the population, investments that will benefit Morocco long into the future.
This is how a market grows: A family that has electricity and water is more likely to be productive, more likely to send their children to school (or children at school more likely to receive a good education if they have water and electricity at home), these educated Moroccans become the government, business owners, staff and property owners of the future.
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