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Addis Ababa - Morocco's inflation rate, which averaged 1% in the period from 2000 to 2007, is the lowest in North Africa during that period, a survey on "The efficiency of budget policy for mobilizing domestic resources in Africa", has revealed.

The highest average inflation rate for the surveyed period was registered in Libya (19%), followed by Algeria (10%), Egypt (7%) and Tunisia (3%), says the survey, which will be presented at the 2nd 2009 Joint Annual Meetings of African Union (AU) Conference of Ministers of Economy and Finance and the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, due early June in Cairo, Egypt.

Inflation rate is expected to stand at 2.9% in 2009 in light of the substantial decrease of economic activities at the global level coupled with the skyrocketing prices of raw materials.

Regarding the tax policy, the region of North Africa shows a quite different picture from that of sub-Saharan countries and reveals much better revenue potential.

Taken together, the countries of North Africa are much more developed in terms of income per capita and the share of industry in total production, says the study, saying that the growth rate in Morocco, Algeria, Tunisia, Libya and Egypt has been "weak" during the 90’s, but slightly increased in the 00’s.

"For these five countries, the stakes are clear. With their enormous revenue potential, they are able to raise funds for poverty reduction and stimulate growth," says the study.