Moroccan economy gets a rainy boost.

Even as the world prepares itself feverishly to enter the twenty first century with a technological bang, there are still certain natural phenomena that dictate the progress or otherwise of many a nation. One such phenomenon is rain.

The importance of rains and water cannot be underestimated for the progress and prosperity of any country, rich or poor. And so it is that Morocco’s fortunes got a mighty dose of heavenly favor in the form of abundant and well-distributed rainfall, like never before in the past few decades.

In this time of global economic crisis, increasing unemployment, falling revenues and incomes, Morocco actually expects to be in position to cut income taxes, increase salaries for public servants, increase public spending on infrastructure projects, channel more investment into eduction and health and so on. In other words, Morocco is planning to make the lives of its citizens easier and more comfortable. Something the citizens of the mightiest economies of the world would envy right now.

Morocco is primarily an agrarian economy and does not have oil wealth. However, it the world’s largest producer and exporter of phosphates that is used in agriculture and industry. The abundant, and more importantly, the well distributed rains this season have literally set the Moroccan economy on fire.

The question now is, how far can Morocco carry on with this rainy dose of growth. It’s stated aim is to achieve a 6% growth rate for fiscal 2009. There are trouble spots, of course. Tourism is down affecting one of the major sources foreign exchange. As is the case with foreign remittances.

Industrial production is also said to be declining. However, as agriculture is the mainstay of the Moroccan economy, and is doing quite well, Morocco can very well smile its way to the Bank, at least for now. And if it acts wisely now, and prepares itself for a rainy day today, it may avoid the usual pitfalls in the growth of its economy.

The Samurai economy is emerging out of recession.

It may not be time yet to celebrate. But the air in Japan is pregnant with subdued optimism and expectation of a turnaround in the economic fortunes of the island nation.

After France and Germany, Japan appears to be breaking out of the recessionary cycle. That was the official announcement of the Japanese Government, that had promoted a USD 260.00 billion stimulus package to revive the economy, and has recorded an upward trend in the major economic indicators.

However, the most important and explosive problem facing Japan, namely, unemployment, is still far from being resolved. Part of the problem is said to be the surplus staff maintained in many of Japan’s manufacturing facilities.

Some of the major reasons attributed to Japan’s economic recovery, though nascent at this point of time, is in the export sector, particularly to China, especially in the electronics and auto sectors. Public spending by Government is also said to have had a positive effect. The stimulus package has also persuaded the Japanese public to loosen their purse strings, and increase consumer spending.

The fact is, there is a fall in the negatives that had battered the Samurai economy for more than a decade and a half. And that is being latched on to by the Government to project a positive image in economic growth.

Be that as it may, the real test of Japan’s recovery would be in sustaining the momentum in economic growth, until such time that not only it recovers the lost ground, but also registers fresh progress. The Samurai have to fight hard in the coming months before they can take it easy.

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