Morocco’s economic growth in the first quarter of 2012 slowed to 2.2 per cent compared to 4.7 per cent during the final quarter of 2011.

Reports attributed the slump to lower agricultural output as a consequence of a shortfall in rain, the continuing effects of economic and financial crisis in the euro zone area, and a decline in tourist revenue and foreign investment flows.

Overall, agricultural production fell 11.7 per cent, while industrial output fell to 2.8 per cent from 5 per cent as a result of a decline in Moroccan exports of garments, mechanical and electronic goods to European markets, Morocco’s main trading partners, a local newspaper reported.

According to the local newspaper, Al Hayat, the tourism industry contributed 1.6 per cent less to the economy

Furthermore, household consumption fell to 1.9 per cent as a result of lower agricultural production and an increase in unemployment to 10 per cent from about 9 per cent a year ago.

Agriculture in Morocco employs about 40% of the nation’s workforce and is the largest employer in the country. Barley, wheat, and other cereals are amongst the main products.

According to the International Monetary Fund, the North African country’s economy is projected to slow to 3.7 per cent this year from 4.3 per cent last year, with inflation estimated to increase from 0.9 per cent, a year ago, to 2 per cent.