Morocco sees 6.3 pct annual growth until 2012

By Tom Pfeiffer

RABAT, July 11 (Reuters) - Morocco's economy is likely to grow by 6.3 percent annually over the next four years as investor-friendly reforms kick in and the kingdom pushes into new export industries and services, the finance minister said.

The government also aims to keep the budget deficit from rising above 3 percent as growing fiscal income and falling public sector costs offset a soaring fuel import subsidy bill, Salaheddine Mezouar told reporters in Rabat on Friday.

Morocco is the only north African country with no oil and decades of sluggish private sector investment mean its export sector has been unable to offset soaring fuel import costs.

The trade deficit widened by 65 percent to 34 billion dirhams ($4.66 billion) in the first five months of 2008, although the current account grew thanks to tourism and money sent home by Moroccans living abroad, the Exchange Office said.

To boost industry and address widespread poverty, the government has launched tourism, road, port and rail projects and business parks for call centres and offshore services.

Reforms to the financial sector have cut lending rates and improvements to make the fiscal and justice systems more transparent and predictable are encouraging foreign investors.

"We see an average growth for 2009-2012 of 6.3 percent," Mezouar said. "We are convinced the Moroccan economy has enough appeal to have this ambition."

He said he saw growth this year at 6.8 percent "or very very close to 6.8 percent", above a previous estimate made last month of 6.2 percent.