(Repeats to include UPDATE 1 in headline)
By Tom Pfeiffer
RABAT, Oct 26 (Reuters) - The Moroccan government expects little change to the kingdom's current account deficit next year as demand for its goods and services recovers from the global economic downturn, the finance minister said on Monday.
Morocco has been trying to grab a bigger slice of world trade with new ports and business parks, tax breaks for exporters and cut price land deals to tempt foreign firms to set up manufacturing bases on Europe's doorstep.
Its plans took a jolt this year as recessions in Europe hit some of the north African country's key exports such as auto parts, electronic components and textiles. Slumping world prices hit its most lucrative export, phosphates.
Exports were still down 34 percent in the first nine months of the year, worse than a 29 percent drop in the first quarter. Foreign direct investment, remittances from Moroccans working abroad and tourism income also have declined.
Yet imports also have tumbled as world oil prices fell -- Morocco buys in almost all of its energy requirements. The government has forecast a current account deficit of 4 percent this year, narrowing from 5.2 percent in 2008.
"For 2009 we see a current account deficit of 4 percent, and we think it will be at the same level, or 4-4.5 percent, in 2010," Economy and Finance Minister Salaheddine Mezouar told Reuters in an interview.
Mezouar was upbeat on prospects for an export recovery next year because the country was busy diversifying into new areas.
"New sectors like auto and aerospace parts are certainly going to pick up again. The growing diversity and maturity of our products on offer gives Morocco a chance to stabilise and diversify its exports," he said.
European consumer spending had not declined to levels that threatened a serious economic imbalance, he said.
"All this tends towards an improvement in demand addressed to Morocco compared to what we've seen in 2009," Mezouar said after presenting the 2010 draft budget to the press.
He said Morocco intended to push ahead with reforms to ease the movement of capital, including an opening of capital accounts and a shift to a more flexible currency exchange rate, but not until an economic recovery was confirmed.
The Moroccan dirham tracks a basket of world currencies including the euro and the U.S. dollar.
When the financial crisis began, some countries delayed plans for more flexible currency rules and other liberalising measures on fears they could spark a flight of capital.
"Next year needs first to confirm a recovery. Once the recovery is confirmed, we will re-start work on these reforms that are so important for our country," said Mezouar. (Reporting by Tom Pfeiffer; editing by Carol Bishopric)