Unemployment Drops in Morocco to 8.5%

Employees work at a factory operated by Somaca in Tangiers, file. REUTERS/Stringer
Employees work at a factory operated by Somaca in Tangiers, file. REUTERS/Stringer
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Unemployment Drops in Morocco to 8.5%

Employees work at a factory operated by Somaca in Tangiers, file. REUTERS/Stringer
Employees work at a factory operated by Somaca in Tangiers, file. REUTERS/Stringer

The unemployment rate in Morocco reached 8.5 percent at the end of June after it was at 9.1 percent last year, Reuters reported, quoting the Kingdom’s High Commission of Planning.

HCP said that the job market was marked by a “further decline” in employment rates in cities, however, rural areas saw a rise of unemployment due to aridity.

“The number of unemployed people has declined from 1.1 million to 1.03 million following a drop of 77,000 in unemployed people,” the HCP said.

The report published on Wednesday showed that Morocco’s national economy created 7,000 job opportunities in the second quarter of 2019 compared to the much higher 117,000 in the same period in 2018.

The unemployed rate in urban areas dropped around 84,000 while it rose approximately 7,000 in rural areas. The unemployment rate in urban areas declined from 13.7 percent to 12.4 percent. , however, it rose in rural areas to 3.3 percent from 3 percent.

The Moroccan economy created during this period 210,000 jobs and lost 203, added the report.

It added that the services sector created 167,000 jobs, while industrial sectors created 43,000 jobs. The construction sector lost 27,000 jobs at the national level due to the continuous real estate crisis, while the agricultural sector lost 176,000 jobs due to aridity.

In the statement, the agency said that 132,000 jobs were gained in cities while only 125,000 were provided in rural areas.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.