Business Environment in Morocco
During the last few years, the Moroccan economy has been characterized by macro-economic stability, coupled with low inflation and a relatively slow economic growth. The government continues to adopt economic reforms and pursue the economic liberalization drive in order to stimulate growth and create jobs. Morocco grew by about 4% over 2010, thanks to the recovery of tourism, remittances and also the resumption of non-agricultural sector. The kingdom is also trying to diversify its economy in order to no longer depend exclusively on agriculture and emphasize areas such as offshoring in order to boost its economic growth.
The GDP growth rate is having trouble stabilizing. Nevertheless, the soundness of the essential economy of Morocco and the increasing attractiveness of the Sharifian kingdom ensure that despite the financial crisis, the country will still show GDP growth in the coming years. Nevertheless, this growth will be insufficient to diminish poverty and reduce the significant rate of unemployment (10%), especially in some age brackets, such as the 15-24 years olds.
Budgetary deficit remains relatively sustainable, which ensures the country's credibility on the markets. The foreign debt is nevertheless considerabel and the poverty rate remains amongs the highest in the Mediterranean.
|GDP (billions USD)||91.37e||103.48e||100.32||107.53e||115.41e|
|GDP (Constant Prices, Annual % Change)||4.9||3.2e||3.9e||4.6||4.9|
|GDP per Capita (USD)||2,899e||3,249||3,117||3,306||3,513|
|Inflation Rate (%)||1.0||1.0||2.9||2.9||2.9|
|Unemployment Rate (% of the Labor Force)||9.1||9.0e||8.9||8.7||8.6|
|Current Account (billions USD)||-4.57||-4.69||-4.35||-3.97e||-|
|Current Account (in % of GDP)||-5.0e||-5.0||-4.4||-3.7e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
Thanks to the richness of Morocco's soil, the agricultural sector is dominant, employing almost half of the active population and contributing around 20% to the GDP. Grains, fruits and vegetables are the country's main crops. Economic growth relies excessively on this sector.
Morocco has little by way of mineral resources; phosphates being its main wealth. Industry contributes around one-third of the GDP, thanks to the textiles, leather goods, food processing, oil refining and electronic assembling sectors. New industry areas are nevertheless booming as well and thus trying to diminish the kingdom's dependence on its agricultural sector: the chemical, automotive, computer, electronics nad aeronautic industry.
The tertiary sector contributes around 50% of the GDP and depends exclusively on tourism, which remains very dynamic despite the economic slowdown brought about by the attacks of September 11, 2001 and those of May 2003 in Casablanca. Other than granting concessions for a lot of public services in the major towns, the country recently liberalized oil and gas exploration regulations. Calls for tender procedures have become increasingly transparent.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||43.3||20.3||36.3|
|Value Added (in % of GDP)||16.4||28.5||55.1|
|Value Added (Annual % Change)||29.8||-0.8||0.7|
Source: World Bank - Last Available Data.
|Moroccan Dirham (MAD) - Average Annual Exchange Rate For 1 USD||8.87||8.80||8.19||7.75||8.06|
Source: World Bank
Indicator of Economic Freedom
- Mostly unfree
- World Rank:
- Regional Rank:
Foreign Trade in Figures
The deflation of commodity prices and weakness of its economic partnerships resulted in a decline in trade of nearly 22% at the end of 2009. The trade deficit thus decreased, but at the end of 2009 it still represented 21% of GDP.
Major sources of imports declines were wheat (-56%) and sulfur (-89%). In terms of exports, there was a considerable drop in the sales of phosphates and derivatives (-64%) and in 2009, the Moroccan Phosphates Board decided to suspend selling in order to prevent a collapse in prices and constitute a substantial stock for the economic recovery.
Morroco's two main export partners are the European Union (70% of trade, the main client and import partner being France, with 15.5% of foreign trade) and the United States. The main export commodities are clothing & clothes, electric machinery, inorganic chemicals, fish & other seafoods. Morroco's two main import partners are the European Union and China. The country mainly imports fuels & oil, electric and electronic machinery and equipment, vehicles, iron and steel.
Since 2000, the authorities have been trying to lower the trade deficit through a series of sector plans (“Emergence 1” and “Emergence 2” for the industrial sector, “Green Morocco” for agriculture et.). It should be noted that free trade accords were signed in 2004 with the United States, Turkey, Tunisia, Egypt and Jordan. The kingdom wishes to double its exports by 2018. An emergency plan was nevertheless launched at the beginning of 2009 in order to boost the export industries hit by the economic crisis (leather and textile goods, automotive equipment).
|Foreign Trade Indicators||2006||2007||2008||2009||2010|
|Imports of Goods (million USD)||23,980||32,010||42,366||32,881||35,522|
|Exports of Goods (million USD)||12,744||15,340||20,345||14,054||17,560|
|Imports of Services (million USD)||3,562||4,527||5,628||5,302||6,095|
|Exports of Services (million USD)||9,269||11,490||12,840||11,892||12,000|
|Imports of Goods and Services (Annual % Change)||8.2||15.0||12.2||-6.0||-|
|Exports of Goods and Services (Annual % Change)||11.6||5.2||7.3||-13.1||-|
|Imports of Goods and Services (in % of GDP)||39.7||44.9||50.9||39.5||-|
|Exports of Goods and Services (in % of GDP)||34.2||35.7||37.5||28.6||-|
|Trade Balance (million USD)||-9,756||-14,170||-19,497||-16,363||-|
|Trade Balance (Including Service) (million USD)||-4,441||-7,421||-12,775||-||-|
|Foreign Trade (in % of GDP)||73.9||80.6||88.3||68.1||-|
Source: WTO - World Trade Organization ; World Bank
Main Partner Countries
(% of Exports)
|Other partnersClose extended list||41.0%|
(% of Imports)
|Other partnersClose extended list||50.8%|
Sources of General Economic Information
Department for Finances
Department for Equipment and Transport
Department of Trade and Industry and New Technologies
Department of Energy and Mines
Department of Tourism
Department of Economic and General Affairs
Overseas Trade Department
- Statistical Office
High Commissioner for Planning
- Central Bank
- Stock Exchange
Casablanca stock exchange
- Search Engines
- Economic Portals
- Executive Power
- Executive power is exercised by the King. He appoints the Prime Minister and members of the Government, directly heads sovereignty fields (Domestic, Foreign affairs, Defense, Religious affairs) and can intervene in the other sectors through Dahir (royal decree).
The Government provides execution of the laws and the administrative apparatus. It is run by the Prime Minister who coordinates its action, passes decrees and submits a program to the Parliament.
- Legislative Power
- The Parliament comprises the Chamber of Representatives (325 deputies elected by universal direct suffrage for 5 years) and the Chamber of Counselors (270 members elected by indirect universal suffrage for 9 years).
The Parliament votes the law; any bill must be successively examined by the 2 Houses. It moreover shares the initiative of the laws with the Prime Minister.
- Main Political Parties
- Morocco has a multi-party system, the parties are numerous and a single party has no chance of gaining power. The parties must get together to form coalition governments. Among the principal parties of the country, one finds:
- The USFP (Forces of the Popular Socialist Union) - left socialist party,
- The PI (Independence Party) - nationalist party,
- The PJD (Justice and Development Party) - islamic party,
- the RNI (National Rally of Independents) - party of independent candidates.
- Current Political Leaders
- King: MOHAMED VI (since July 1999) - hereditary
Prime Minister: Abbas EL FASSI (since September 2007).
- Next Election Dates
- Chamber of Representatives: in 2012
Indicator of Freedom of the Press
- World Rank:
- 5 places down compared to 2008
Indicator of Political Freedom
- Partly Free
- Political Freedom:
- Civil Liberties:
Any Comments About This Content? Report It to Us.
Morocco is one of the few countries in North Africa not having widespread protests, thanks to timely political reforms which helped the country avoid the political backlash of Arab Spring.
Hong Kong Trade Development Council (HKTDC) on 30 Jul 2012 related to Business Environment in Morocco
Afribiz.net provides premium content, resources, tools, insights, and strategy for doing business and investing in Africa.
Afribiz Division, Conceptualee, Inc. on 27 Dec 2010 related to Business Environment in Morocco
How2Go Consultoría de Internacionalización on 4 Jun 2014 related to Business Environment in Morocco
Internationalization Consulting, BrazilHow2Go specializes in bilateral internationalization of companies from Europe and America, formed by a team of...
Government Trade Promotion, Hong Kong SAR
Africa Business & Investment, South Africa