RABAT: Morocco cut its economic growth forecast for this year to less than 2 percent from 3 percent after the North African kingdom's cereal harvest suffered its worst drought in three decades, the finance minister said on Monday.
It was Mohamed Boussaid's first public comment since the release of the annual cereal harvest by the Agriculture Ministry showed a 70 percent drop. Agriculture accounts for 15 percent of the economy.
The abnormally dry weather across the country is adding to the financial risks for Morocco's government just as it seeks to spur economic growth and cut public spending.
Boussaid told Reuters on the sidelines of a news event that the government also plans to renegotiate a precautionary credit line with the International Monetary Fund.
The amount and other details will be discussed later, he said. The current credit line is worth $5 billion and will expire in August 2016.
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