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flag Morocco Morocco: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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. The rate of unemployment has increased over the past few years and is particularly affecting 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.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 90.9191.14e101.77e109.24116.82
GDP (Constant Prices, Annual % Change) 4.93.7e4.64.64.9
GDP per Capita (USD) 2,8852,861e3,162e3,3593,556
General Government Gross Debt (in % of GDP) 48.051.1e54.255.556.0
Inflation Rate (%) 1.01.01.5e2.72.6
Unemployment Rate (% of the Labor Force) 9.19.19.08.98.8
Current Account (billions USD) -4.95-3.94e-5.33e-4.36-4.14
Current Account (in % of GDP) -5.4-4.3-5.2e-3.5-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

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) 40.9 21.7 37.2
Value Added (in % of GDP) 15.5 29.2 55.3
Value Added (Annual % Change) -7.6 2.8 10.9

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Moroccan Dirham (MAD) - Average Annual Exchange Rate For 1 USD 8.808.197.758.068.42

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Morocco on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
59.6/100
Position:
Mostly unfree
World Rank:
88/179
Regional Rank:
10/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

In 2011, Morocco's foreign trade recorded an increase of over 18% compared to 2010. This increase is mainly due to higher exports of phosphates and derivatives (an increase of 35% in one year) and cars (63.8%), but also to soaring oil prices on international markets. According to the Moroccan Exchange Office, during the period of November 2010 - November 2011 imports in fact rose more quickly (19.7%) than exports (15.4%). Therefore, Morocco's trade balance has been negative for several years, which only exacerbates the fall in the kingdom's foreign exchange reserves.

The authorities are trying to address the trade deficit through a series of sectoral plans: "Emergence" for the industry, "Green Morocco" for agriculture and Morocco Export Plus, which aims to triple the volume of exported goods and services over the next ten years.
It should be noted that free trade accords were signed in 2004 with the United States, Turkey, Tunisia, Egypt and Jordan.

Morocco's largest trading partner is France, which imports 22.5% of the kingdom's total exports and provides 15.6% of its imports, followed by Spain (16.9% market share of Moroccan exports and 10.6% market share of imports).

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 23,98032,01042,36632,88135,522
Exports of Goods (million USD) 12,74415,34020,34514,05417,560
Imports of Services (million USD) 3,5624,5275,6285,3026,095
Exports of Services (million USD) 9,26911,49012,84011,89212,000
Imports of Goods and Services (Annual % Change) 8.215.012.2-6.04.7
Exports of Goods and Services (Annual % Change) 11.65.27.3-13.14.7
Imports of Goods and Services (in % of GDP) 39.744.950.939.540.9
Exports of Goods and Services (in % of GDP) 34.235.737.528.628.2
Trade Balance (million USD) -9,756-14,170-19,497-16,363-15,062
Trade Balance (Including Service) (million USD) -4,441-7,421-12,775-10,927-9,953
Foreign Trade (in % of GDP) 73.980.688.368.169.1

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
France 22.5%
Spain 16.9%
India 6.1%
Italy 4.5%
Brazil 3.8%
See More Countries 46.3%
Main Suppliers
(% of Imports)
2010
France 15.6%
Spain 10.6%
China 8.4%
United States 7.1%
Saudi Arabia 6.0%
See More Countries 52.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Insulated "incl. enamelled or anodised" wire,...Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made-up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors 9.3%
Diphosphorus pentaoxide; phosphoric acid;...Diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined 9.2%
Mineral or chemical fertilizers containing two or...Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers (excl. pure animal or vegetable fertilizers or mineral or chemical nitrogenous, phosphatic or potassic fertilizers); animal, vegetable, mineral or chemical fertilizers in tablets or similar forms or in packages of a gross weight of <= 10 kg 7.1%
Natural calcium phosphates and natural aluminium...Natural calcium phosphates and natural aluminium calcium phosphates, natural and phosphatic chalk 6.0%
Women's or girls' suits, ensembles, jackets,...Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (excl. knitted or crocheted, wind-jackets and similar articles, slips, petticoats and panties, track suits, ski suits and swimwear) 5.4%
See More Products 62.9%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 8.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 7.4%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 4.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.6%
Wheat and meslinWheat and meslin 2.5%
See More Products 73.3%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
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
Bank Al-Maghrib
Stock Exchange
Casablanca stock exchange
Search Engines
Araboo
Maroc.net
Maroc Export
Marweb Maroc
Wanadoo
Economic Portals
Finance.ma
1st Maroc
Entreprendre.ma

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Political Outline

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: Abdelilah BENKIRANE - Justice and Development Party (since 29 November 2011)
Next Election Dates
Chamber of Representatives: in 2012
 

Indicator of Freedom of the Press

World Rank:
135/178
Evolution:
8 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
5/7
Civil Liberties:
4/7

Map of freedom 2010

 

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Last Updates: January 2012