Morocco

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

During the last few years, the Moroccan economy has been characterised by a macroeconomic stability, coupled with low inflation and relatively slow economic growth. The government continues to pursue economic reforms and liberalisation aimed at stimulating growth and creating jobs.
The GDP growth rate does not seem to stabilise (8.0% in 2006, 2.5% in 2007, 5.9% forecasted for 2008). Consequently, this growth is insufficient to curb poverty and unemployment (11% in 2005). The country's economic performance remains largely dependent on agriculture, which is extremely vulnerable to inconsistent rainfall. Large foreign debts and the considerably deficit budgetary balance are also cause for concern.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	56.39	58.96	65.41	72.76e	79.71e
GDP (constant prices, annual % change)	5.2	2.4	8.0	2.5e	5.9e
GDP per capita (USD)	1,889.86	1,955.86e	2,148.91e	2,367.74e	2,568.77e
Inflation rate (%)	1.5	1.0	3.3	2.5e	2.0e
Unemployment rate (% of the labor force)	10.8	11.0	9.7	n.c.	n.c.
Current Account (billions USD)	0.97	1.40	2.22	0.53e	0.17e
Current Account (in % of GDP)	1.7	2.4	3.4	0.7e	0.2e

Source: IMF - World Economic Outlook Database; ILO, Laborstat - Yearly Statistics

Note: (e) Estimated data

Socio-demographic indicators	2004	2005	2006
Unemployment rate (%)	10.8	11.0	9.7

Source:

Main sectors of industry

The agricultural sector is predominant in Morocco: almost half of the active population is employed in this sector which contributes around 13% to the GDP. Cereals, fruits and vegetables are the main crops. Economic growth has been hampered by an over-reliance on agriculture. Morocco has few mineral resources; phosphates being its main wealth. The industry contributes one-third to the GDP, thanks particularly to sectors like textiles, leather goods, food processing, oil refining, and electronic assembling.
The service sector contributing 55% to the GDP is driven by tourism which is very dynamic, despite an economic slowdown since September 11, 2001 and Casablanca attacks in May 2003. Morocco has recently liberalised rules for oil and gas exploration, besides granting concessions for many public services in major cities. The invitation to tender procedures have become increasingly transparent.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	29.0	4.3	4.1
Value added (in % of GDP)	16.6	29.0	54.4
Employment by sector (in % of total employment)	47.0	21.0	32.0

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	11.02	9.57	8.87	8.87	8.80

Source: World Bank - World Development Indicators

Foreign trade in figures

The trade deficit of Morocco has strongly aggravated in 2007 (+39%) mainly due to the rise of cereal imports related to the low levels of rainfall recorded this year and the energy bills. Increase in exports (10.7 M Euro, +7%) thus could not compensate for the increase in imports (22%) (23 M Euro).
The top three export partners of Morocco are: France, Spain and United Kingdom. The commodities mainly exported are apparel & clothing, electric machinery, inorganic chemicals, fish & other sea products.
The top three import partners are: France, Spain and Saudi Arabia. Morocco mainly imports mineral fuels & oils, machinery, electric & electronic equipment, vehicles, and iron & steel.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	10,900	13,117	16,408	18,894	n.c.
Exports of goods (millions USD)	7,839	8,771	9,922	10,690	n.c.
Imports of services (millions USD)	2,413	2,861	3,451	3,845	n.c.
Exports of services (millions USD)	4,360	5,478	6,710	8,098	n.c.
Imports of goods and services (annual % change)	7.0	-0.8	9.6	7.4	-1.3
Exports of goods and services (annual % change)	6.5	-3.1	3.4	8.5	8.3
Imports of goods and services (in % of GDP)	37.1	36.6	40.0	44.3	44.3
Exports of goods and services (in % of GDP)	33.8	32.5	33.2	36.4	37.8
Trade Balance (millions USD)	-3,061	-4,345	-6,487	-8,204	n.c.
Trade Balance (including service) (millions USD)	-1,115	-1,728	-3,228	-3,951	n.c.
Current Account (millions USD)	1,477	1,582	970	1,110	n.c.
Current Account (in % of GDP)	4.1	3.6	1.9	2.2	n.c.
Foreign trade (in % of GDP)	70.9	69.1	73.2	80.8	82.1

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	Comtrade. 2006.
France	28.4%
Spain	20.8%
United Kingdom	6.0%
Italy	4.9%
India	4.3%

Main suppliers (% of imports)	Comtrade. 2006.
France	16.5%
Spain	11.6%
Saudi Arabia	6.8%
Italy	6.4%
China	5.4%

Source: Comtrade. 2006.

Main products

Main exports (% of exports)	Comtrade. 2006.
Articles of apparel and clothing accessories	19.2%
Electrical machinery and equipment	15.1%
Inorganic chemicals	8.2%
Articles of apparel and clothing accessories, knitted	6.4%
Fish and crustaceans, molluscs	5.5%

Main imports (% of imports)	Comtrade. 2006.
Mineral fuels, mineral oils	21.6%
Machinery and mechanical appliances	10.2%
Electrical machinery and equipment	9.4%
Vehicles other than railway or tramway	6.4%
Iron and steel	4.8%

Source: Comtrade. 2006.

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of 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 Ecomnomic and General Affairs Overseas Trade Department
Statistical Office: High Commissioner for Planning
Central Bank: Bank Al-Maghrib
Stock Exchange: Casablanca stock exchange
Online newspapers: Le Maroc
Emarrakech
Casafree
Morocco Portal
Search Engines: WoYaa Maroc
Maroc.net
Maroc Export
Marweb Maroc
Wanadoo
Economic portals: Finance.ma
1st Maroc
Entreprendre.ma

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: Abbas EL FASSI (since September 2007).
Next election dates: Chamber of Counselors: in 2009
Chamber of Representatives: in 2012