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Economy / Morocco

Morocco

June 2008 | Ratings Update

Morocco has accepted millions of dollars in gifts from Gulf allies as rising commodity prices push up the government's subsidy bill and stir labour unrest. The UAE is to pay US$300mn into a special purpose fund, adding to the US$500mn that was pledged by Saudi Arabia earlier in May. The cost of subsidising food and fuel prices is eating into the Moroccan budget, yet despite official efforts to ease the cost of basic goods, consumers are still feeling the pinch. In mid-May, the Kingdom's leading trade union, the CDT, held a national strike, the first to take place under King

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