Boston, MA -- (SBWIRE) -- 02/05/2014 -- There has been a revision to our forecasts for 2014 due to a change in our historical data which indicates that the Moroccan construction industry experienced real growth of around 4.2% in 2011, with the sector recovering from the period of relatively subdued growth seen in 2009 and 2010. The country has a healthy pipeline of infrastructure projects especially for renewable energy, multilateral financing and a strong economic growth outlook of GDP growth forecast at 2.8%. Investor interest in the country as an export-oriented manufacturing hub for the European market, coupled with a burgeoning tourism industry, should bode well for Morocco's underlying growth momentum in the next few years. We expect the sector to continue on this strong growth trajectory over the medium-to-long term; we forecast real growth of 2.56% year-on-year (y-o-y) for Morocco's construction industry in 2014 and average real industry growth of 6.8% per annum between 2014 and 2023.
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The infrastructure developments which underpin our outlook for the sector over the forecast period are:
- A low base (GDP per capita is estimated at around US$3,000) and strong growth potential in the tourism, renewable energy and export-oriented manufacturing industries, are making the economy an increasingly attractive destination for foreign investment.
- The government stepped up its spending on basic infrastructure to MAD400bn (US$47.26bn) for 2008-2012, up from just MAD80bn (US$9.45bn) for the previous period. Roads, ports, airports and transmission grids have been among the assets to benefit from the stronger spending, providing a windfall for established firms.
- In terms of infrastructure funding the government has secured loans for the development of its transport, residential/non-residential and renewables infrastructure. Indeed, throughout 2013 the Moroccan government has received approximately US$1.2bn and has a further US$13.5bn investment plan which will be allocated in the Power Sector.
- The European Investment Bank has announced that it will provide two loans totalling EUR420mn (US $553mn) to the Moroccan government. EUR240mn (US$316mn) will be given to the Moroccan road authority, Autoroutes du Maroc, to build a 142km motorway between El Jadida and Safi. EUR180mn (US$237mn) will be provided in order to extend the Moroccan electricity grid, with approximately 1,300km of new overhead electricity lines will be developed by 2015.
- In May 2011, Moroccan state power company Office National de l'Electricité (ONE) invited wind turbine companies to submit expressions of interest in building and operating a 150MW wind farm 300km north-east of Rabat. Morocco - the only North African country without significant thermal indigenous resources - has launched a renewable energy drive focusing on wind and solar energy in order to reduce its reliance on costly imports and meet rising demand.
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