Morocco: Economy#
Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.In the 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the US in 2006 and an Advanced Status agreement with the EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighted on the country’s budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.
Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. Key economic challenges for Morocco include reforming the education system and the judiciary.
Economic Facts#
| GDP (purchasing power parity) | $282.8 billion (2016 est.) $277.7 billion (2015 est.) $265.7 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $104.9 billion (2015 est.) |
| GDP - real growth rate | 1.8% (2016 est.) 4.5% (2015 est.) 2.6% (2014 est.) |
| GDP - per capita (PPP) | $8,400 (2016 est.) $8,300 (2015 est.) $8,000 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 29% of GDP (2016 est.) 28.3% of GDP (2015 est.) 26.6% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 58.5% government consumption: 19.4% investment in fixed capital: 28.6% investment in inventories: 1.6% exports of goods and services: 34.4% imports of goods and services: -42.5% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 13.1% industry: 29.8% services: 57.2% (2016 est.) |
| Agriculture - products | barley, wheat, citrus fruits, grapes, vegetables, olives; livestock; wine |
| Industries | automotive parts, phosphate mining and processing, aerospace, food processing, leather goods, textiles, construction, energy, tourism |
| Industrial production growth rate | 1.6% (2016 est.) |
| Labor force | 12.23 million (2016 est.) |
| Labor force - by occupation | agriculture: 39.1% industry: 20.3% services: 40.5% (2014 est.) |
| Unemployment rate | 9.9% (2016 est.) 9.7% (2015 est.) |
| Population below poverty line | 15% (2007 est.) |
| Household income or consumption by percentage share | lowest 10%: 2.7% highest 10%: 33.2% (2007) |
| Distribution of family income - Gini index | 40.9 (2007 est.) 39.5 (1999 est.) |
| Budget | revenues: $25.22 billion expenditures: $29.43 billion (2016 est.) |
| Taxes and other revenues | 24% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -4% of GDP (2016 est.) |
| Public debt | 77% of GDP (2016 est.) 75.7% of GDP (2015 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 1.8% (2016 est.) 1.6% (2015 est.) |
| Central bank discount rate | 6.5% (31 December 2010) 3.31% (31 December 2009) |
| Commercial bank prime lending rate | 5.9% (31 December 2016 est.) 6% (31 December 2015 est.) |
| Stock of narrow money | $76.06 billion (31 December 2016 est.) $71.58 billion (31 December 2015 est.) |
| Stock of broad money | $92.72 billion (31 December 2014 est.) $92.2 billion (31 December 2013 est.) |
| Stock of domestic credit | $107.4 billion (31 December 2016 est.) $106.5 billion (31 December 2015 est.) |
| Market value of publicly traded shares | $45.93 billion (31 December 2015 est.) $52.75 billion (31 December 2014 est.) $53.83 billion (31 December 2013 est.) |
| Current account balance | -$1.276 billion (2016 est.) -$1.928 billion (2015 est.) |
| Exports | $18.72 billion (2016 est.) $18.48 billion (2015 est.) |
| Exports - commodities | clothing and textiles, automobiles, electric components, inorganic chemicals, transistors, crude minerals, fertilizers (including phosphates), petroleum products, citrus fruits, vegetables, fish |
| Exports - partners | Spain 22.1%, France 19.7%, India 4.9%, US 4.3%, Italy 4.3% (2015) |
| Imports | $33.15 billion (2016 est.) $32.74 billion (2015 est.) |
| Imports - commodities | crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics |
| Imports - partners | Spain 13.9%, France 12.4%, China 8.5%, US 6.5%, Germany 5.8%, Italy 5.5%, Russia 4.4%, Turkey 4.3% (2015) |
| Reserves of foreign exchange and gold | $24.67 billion (31 December 2016 est.) $23.01 billion (31 December 2015 est.) |
| Debt - external | $42.98 billion (31 December 2016 est.) $42.25 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $51.7 billion (31 December 2016 est.) $48.7 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $3.818 billion (31 December 2016 est.) $4.555 billion (31 December 2015 est.) |
| Exchange rates | Moroccan dirhams (MAD) per US dollar - 9.929 (2016 est.) 9.7351 (2015 est.) 9.7351 (2014 est.) 8.3798 (2013 est.) 8.6 (2012 est.) |