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The economy of Morocco is considered a relatively liberal economy, governed by the law of supply and demand. Since 1993, in line with many Western world changes, Morocco has followed a policy of privatisation. Morocco has become a major player in African economic affairs, and is the 5th largest African economy by GDP (PPP).
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- Overview
- Economy of Morocco
- Agriculture, forestry, and fishing
- Resources and power
- Manufacturing
- Finance
- Trade
- Services
- Labour and taxation
- Transportation and telecommunications
As is true in many former African colonies, the Moroccan economy remains heavily dependent on the export of raw materials. Also of growing importance to the economy are modern sectors, particularly tourism and telecommunications. Altogether, the modern portion accounts for more than two-thirds of gross domestic product (GDP), even though it employs only about one-third of the country’s workforce.
Since the mid-1980s the Moroccan government has undertaken a vigorous program of privatization and economic reform, encouraged by major international lenders such as the World Bank and the International Monetary Fund. Measures have included selling state-owned enterprises, devaluing the currency, and changing pricing policies to encourage local production. In 1999 the Moroccan government set up a loan fund to stimulate growth and competition among small businesses. Morocco’s sandy beaches, sunshine, diverse environments, and rich cultural heritage give it outstanding potential for tourism, which the government has been actively developing.
As is true in many former African colonies, the Moroccan economy remains heavily dependent on the export of raw materials. Also of growing importance to the economy are modern sectors, particularly tourism and telecommunications. Altogether, the modern portion accounts for more than two-thirds of gross domestic product (GDP), even though it employs only about one-third of the country’s workforce.
Since the mid-1980s the Moroccan government has undertaken a vigorous program of privatization and economic reform, encouraged by major international lenders such as the World Bank and the International Monetary Fund. Measures have included selling state-owned enterprises, devaluing the currency, and changing pricing policies to encourage local production. In 1999 the Moroccan government set up a loan fund to stimulate growth and competition among small businesses. Morocco’s sandy beaches, sunshine, diverse environments, and rich cultural heritage give it outstanding potential for tourism, which the government has been actively developing.
Morocco is endowed with numerous exploitable resources. With approximately 33,000 square miles (85,000 square km) of arable land (one-seventh of which can be irrigated) and its generally temperate Mediterranean climate, Morocco’s agricultural potential is matched by few other Arab or African countries. It is one of the few Arab countries that has the potential to achieve self-sufficiency in food production. In a normal year Morocco produces two-thirds of the grains (chiefly wheat, barley, and corn [maize]) needed for domestic consumption. The country exports citrus fruits and early vegetables to the European market; its wine industry is developed, and production of commercial crops (cotton, sugarcane, sugar beets, and sunflowers) is expanding. Newer crops such as tea, tobacco, and soybeans have passed the experimental stage, the fertile Gharb plain being favourable for their cultivation. The country is actively developing its irrigation potential that ultimately will irrigate more than 2.5 million acres (1 million hectares).
Nevertheless, the danger of drought is ever present. Especially at risk are the cereal-growing lowlands, which are subject to considerable variation in annual precipitation. On average, drought occurs in Morocco every third year, creating a volatility in agricultural production that is the main constraint on expansion in the sector.
Livestock raising, particularly sheep and cattle, is widespread. Morocco fills its own meat requirements and is also attempting to become self-sufficient in dairy products.
Morocco’s forests, which cover about one-tenth of its total land area (excluding Western Sahara), have substantial commercial value. Morocco satisfies much of its timber needs by harvesting the high-elevation forests in the Middle and High Atlas. Its eucalyptus plantations enable it to be self-sufficient in charcoal, which is used extensively for cooking fuel. Eucalyptus also provides the raw material needed for the country’s paper and cellulose industries. Paper pulp is a valuable export as is cork from the country’s plentiful cork oak forests.
With its acquisition of Western Sahara, Morocco came to possess some two-thirds of the world’s reserves of phosphates, used for the manufacture of fertilizers and other products. Low world prices for phosphates, however, have hindered production. Other minerals include iron ore and coal, mined for Morocco’s domestic use, and barite, manganese, lead, and zinc, which are exported in small quantities.
A major weakness in Morocco’s resource inventory is its shortage of domestic energy sources. Oil exploration has been disappointing, although the country possesses some natural gas reserves that have been exploited. Its hydroelectric potential is considerable and now being tapped. Morocco must cover the bulk of its growing energy needs through imports, principally crude petroleum, which is refined domestically. Thermal power plants produce much of the country’s electricity.
Manufacturing accounts for about one-sixth of GDP and is steadily growing in importance in the economy. Two particularly important components of the country’s industrial makeup are processing raw materials for export and manufacturing consumer goods for the domestic market. Many operations date to the colonial period. Until the early 1980s, governm...
Morocco’s central bank, the Bank al-Maghrib, plays a preeminent role in the country’s banking system. It issues the Moroccan dirham, maintains Morocco’s foreign currency reserves, controls the credit supply, oversees the government’s specialized lending organizations, and regulates the commercial banking industry. Privatization has stimulated activ...
Government attempts to increase exports and control imports have had some success, and a chronic annual trade deficit has begun to narrow. By the 1990s Morocco had also significantly lowered its foreign debt. The three leading exports are agricultural produce (citrus fruits and market vegetables), semiprocessed goods and consumer goods (including t...
Services, including government and military expenditures, account for about one-fourth of Morocco’s GDP. Government spending alone, despite an ongoing effort on the part of the government to sell much of its assets to private concerns, accounts for fully half of the service economy. Since the mid-1980s tourism and associated services have been an i...
Roughly one-third of the population is employed in agriculture, another one-third make their living in mining, manufacturing, and construction, and the remainder are occupied in the trade, finance, and service sectors. Not included in these estimates is a large informal economy of street vendors, domestic workers, and other underemployed and poorly paid individuals. High unemployment is a problem; the official figure is roughly one-fifth of the workforce, but unofficial estimates are much higher, and—in a pattern typical of most Middle Eastern and North African countries—unemployment among university graduates holding nontechnical degrees is especially high. Several trade unions exist in the country; the largest of these, with nearly 700,000 members, is L’Union Marocaine du Travail, which is affiliated with the International Confederation of Free Trade Unions.
Tax revenues provide the largest part of the general budget. Taxes are levied on individuals, corporations, goods and services, and tobacco and petroleum products.
Morocco’s road network effectively integrates the country’s diverse regions. Established during the colonial period, the network has been well maintained and gradually expanded since. The railway system connects the principal urban centres of the north, and new rail links, together with improved roads, are being established to El-Aaiún (Laâyoune) in Western Sahara. Morocco has some two dozen ports along its lengthy coastline. Casablanca alone accounts for about half of all port tonnage handled, although port facilities in Tangier are of increasing significance. Other major ports include Safi, Mohammedia, Agadir, Nador, Kenitra, and El Jorf Lasfar. About a dozen airports capable of accommodating large aircraft service the country; the principal international airport is located near Casablanca. The state-owned Royal Air Maroc (RAM) airline provides regular service to Europe, North America, the Middle East, and western Africa.
In the late 1980s and early ’90s the government undertook a major expansion and modernization of the telecommunications system. This nearly quadrupled the number of internal telephone lines and greatly improved international communications. In 1996 the state-owned telecommunications industry was opened up to privatization by a new law that allowed private investment in the retail sector, while the state retained control of fixed assets. In 1998 the government created Maroc Telecom (Ittiṣālāt al-Maghrib), which provides telephone, cellular, and Internet service for the country. Satellite dishes are found on the roofs of houses in even the poorest neighbourhoods, suggesting that Moroccans at every social and economic level have access to the global telecommunications network. The Internet has made steady inroads in Morocco; major institutions have direct access to it, while private individuals can connect via telecommunications “boutiques,” a version of the cyber cafés found in many Western countries, and through home computers.
Nov 15, 2023 · Learn how Morocco's economy was affected by shocks in 2022 and 2023, and how the government is implementing reforms to boost growth and reduce disparities. Find out about Morocco's external resilience, trade performance, and social protection.
Apr 14, 2022 · The report projects growth to slow to 1.1% in 2022 due to drought, rising food and energy prices, and COVID-19 impacts. It also assesses the risks and policy options for the Moroccan economy amid global shocks and reforms.
Jan 10, 2024 · Key economic indicators of Morocco - statistics & facts. Morocco had the fifth-highest GDP in Africa in 2021, reaching 131 billion U.S. dollars. Although the nation's economy experienced a...
GDP (current US$) - Morocco. World Bank national accounts data, and OECD National Accounts data files.
Feb 14, 2023 · After a strong post-COVID-19 rebound last year, Morocco's economy came under mounting pressure from overlapping supply shocks: a severe drought and a surge in commodity prices that have fed inflation. Nonetheless, Morocco’s economic growth is expected to accelerate to 3.1 % in 2023, thanks to a rebound of the primary sector.
