MOROCCO Economy

Morocco has a relatively moderate economy governed by the laws of supply and demand. Some economy sectors have been privatized by the government since 1993 to enhance the country’s economic growth.

Morocco’s economic freedom score is 59.6, making its economy the 93rd freest in the 2011 Index. Its score is 0.4 point better than last year as a result of improvements in trade, investment, and labour freedom. Also, Morocco is ranked 10th out of 17 countries in the Middle East/North Africa region, and its overall score is close to the world average.

Morocco’s gradual economic liberalization has benefited from a balanced commitment to economic reform that has encouraged a dynamically developing private sector. Facilitated by reforms on the key factors of competitiveness and diversification of the productive base, and despite the challenging global economic environment, its economy has expanded.

Morocco is characterized by low inflation and stable development in the services and industrial sectors.

Morocco’s financial sector has also undergone considerable improvement since 2003 due to economic policies pursued by King Mohammed VI. The King also launched the $2 billion National Initiative for Human Development (INDH) in 2005, which smoothed the way for an revamp of the tourism and agriculture sectors.

Morocco’s economic growth is far more diversified, as new service and industrial centers, such as Casablanca, are being developed. The agriculture sector is being transformed, which in combination with good rainfalls led to a growth of over 20% in 2009.

However, there are remaining challenges that will require deeper reforms to overcome which include the labour market which is not flexible and energetic and the judiciary which is inefficient and vulnerable to political intervention and corruption.

In spite of the success of the INDH in 2005, Morocco continues to struggle with a high illiteracy rate, a low education enrollment rate and a high youth unemployment rate.

What is more, Morocco has drastically modernized its customs procedures in recent years, but some prohibitive tariffs, import restrictions, services market access barriers, export incentives, and corruption confine the trade.

When it comes to taxes, Morocco has relatively high taxes. The top income tax rate is 40 percent, and the top corporate tax rate is 30 percent. Credit institutions and leasing companies are subject to a 37 percent rate. Other taxes include a value-added tax (VAT), a gift tax, and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 26.9 percent.

The inflation rate has been low, averaging 1.8 percent between 2007 and 2009. Government needs for energy and food (for example, vegetable oil, sugar, flour, bread, and cereals) continue to keep prices artificially low for consumers.

The government also influences prices through state-owned enterprises and utilities, including electricity, and by subsidizing health products and educational supplies.

The investments both foreign and local are treated equally, and 100 percent foreign ownership is allowed in most sectors of the economy.

In sectors in which the state has a monopoly, including phosphates, wholesale fruit and vegetable distribution, and water and electricity supplies, no private foreign or domestic investment is permitted.

The government set regional investment centers to decentralize and accelerate investment-related procedures, but red tape persists.

Morocco’s financial system is moderately well developed for the region, but credit costs are relatively high. Furthermore capital markets are relatively well developed, and there is an ongoing campaign to increase modernization and transparency. The Casablanca Stock Exchange is one of the few regional exchanges to impose no restrictions on foreign participation. What is important to mention is that the global financial crisis has had a limited impact on Morocco’s financial system.

Tourist is another sector in which Morocco is developing. Morocco is one of the few African countries that are considered as tourist destinations. Tourism is a major foreign exchange earner of Morocco. It is a major provider to the foreign exchange reserves of the country.


GDP (purchasing power parity):

$146.7 billion (2009)

$139.6 billion (2008 est.)

$131.5 billion (2007 est.)


The performance of various sectors in the GDP as of 2009 is:

Agriculture: 18.8%

Industry: 32.6%

Services: 48.6%


Morocco’s labor force totaled to 11.46 million in 2009 and they spanned the three main sectors as given below:

Agriculture: 44.6%

Industry: 19.8%

Services: 35.5%

MOROCCO Economy Forecast

The government of Morocco government spend significant time and effort in improving unemployment levels, reducing poverty, and providing the people of this part of the world with a higher standard of living. More recently, new and rejuvenated efforts are taking place to make this country a free market that would be more attractive to international investors. Other initiatives are in progress such as membership to the Association Agreement with the European Union and the Free Trade Agreement with the United States.

Today, Morocco enjoys a more diversified market, one that has developed better service and business sectors.

The predictions for 2015 show that the GDP will hit $132.371 billion in US currency and as afar as it concerns the inflation rate will probably change to to 2.00% and 2.6%.