Economic trends
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 branches 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.
International trade
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).
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Last updates: February 2012
