Morocco’s economy is multifaceted and shaped by a blend of traditional and modern sectors. It has evolved into a relatively liberal economy, emphasizing the law of supply and demand, with significant government reforms towards privatization since the early 1990s.
This shift has enhanced Morocco’s economic competitiveness, especially in North Africa, making it a major player in African economic affairs and the 6th largest African economy by GDP (PPP).
The Moroccan economy heavily relies on agriculture, which, despite accounting for around 14% of GDP, employs a significant portion of the population. However, the country’s economic landscape is not solely agricultural; it has a robust service sector, contributing over half of the GDP, and a strong industry sector, comprising mining, construction, and manufacturing, which together add another quarter to the GDP.
Tourism, telecommunications, and textile sectors are notable for their high growth, indicating a diversification in Morocco’s economic base.
The country is also the world’s 2nd-largest producer of phosphates, a key contributor to its economy.
Workers’ remittances and tourism have been vital since independence, highlighting the country’s increasing integration into the global economy.
Despite its progress, Morocco faces challenges like structural unemployment a significant informal job sector, and high income disparities. To address these issues, the government has implemented various economic reforms, including privatization, currency devaluation, and policy changes to boost local production.
What is the economic background of Morocco?
The history of Morocco’s economic development is marked by various phases and strategies:
- 1960–1989: Focus on modernizing the economy, with development plans emphasizing agriculture, tourism, and industrial growth.
- 1990–2000s: Efforts to diversify the economy, dealing with challenges like drought (lack of precipitation and water shortage ) and external debt, while achieving macroeconomic stability.
- 2008: Recognition by the IMF of Morocco’s strong economic progress and effective monetary policy.
- Post-2000s: Continued economic diversification, with specific reforms in sectors like telecommunications and energy.
- 2020+: Economic challenges due to COVID-19, led to a recession and a focus on addressing social issues and economic recovery.
What type of economy does Morocco have?
Morocco has an economy characterized by economic liberalism and openness towards the international community.
Since its independence, the country has been committed to political pluralism and economic liberalism, ensuring the right of ownership and freedom of enterprise as fundamental rights.
From the early 1980s, Morocco has pursued a policy of economic and financial openness, focusing on the liberalization of foreign trade, greater integration into the world economy, and strengthening its role in the global economic system.
Moroccan Ministry of Economy and Finance
The Moroccan Ministry of Economy and Finance is a key governmental body in Morocco, responsible for managing the country’s economy and financial affairs.
As of 2024, the Moroccan Ministry of Economy and Finance is headed by Nadia Fettah Alaoui. She has been in office since October 7, 2021, serving under the administration of Prime Minister Aziz Akhannouch.
Key responsibilities of the Moroccan Ministry of Economy and Finance include:
- Economic Policy Development: Formulating and implementing economic policies to promote sustainable growth and development in Morocco.
- Budget Management: Preparing the national budget, overseeing its execution, and managing public finances to ensure fiscal discipline and efficiency.
- Taxation: Administering tax policies, collecting taxes, and combating tax evasion to ensure a fair and efficient tax system.
- Financial Regulation: Regulating and supervising financial institutions to maintain the stability and integrity of the financial system.
- Public Expenses Management: Ensuring that government spending is effective, efficient, and aligned with national priorities.
- Debt Management: Managing the national debt, including borrowing strategies, debt issuance, and servicing to maintain financial stability.
- International Economic Relations: Representing Morocco in economic matters on international platforms and managing relationships with international financial institutions.
What are the economic factors in Morocco?
As of 2024, Morocco’s economy is exhibiting steady growth and positive economic indicators. The country’s economic growth is expected to rise to 3.6% in 2024, following a growth of 3.3% in 2023. This growth is anticipated due to factors like an average cereals harvest and an increase in exports.
Additionally, the annual inflation rate is projected to decrease from 2.8% in 2023 to 1.8% in 2024
However, the fiscal deficit is expected to be around 5% of GDP in 2024, slightly up from 4.8% in 2023.
Morocco’s economic indicators
From 1980 to 2023, Morocco’s economic indicators such as unemployment, inflation, and population have shown notable trends.
Unemployment and Inflation Rate: From 1980 to 2022, Morocco experienced fluctuations in unemployment and inflation rates. The unemployment rate, for instance, hit 16.0% in 1995 and gradually decreased to around 9-10% in recent years. Inflation rates have also varied, with significant highs in the early 1990s and more stable, lower rates in recent years.
This graph shows the unemployment rate in Morocco over the years. The highest rates were observed in the early 1990s, gradually decreasing over time. This trend reflects Morocco’s efforts in job creation and economic reforms.
![Morocco: Inflation rate from 1988 to 2028 (compared to the previous year)](https://www.statista.com/graphic/1/502819/inflation-rate-in-morocco.jpg)
The inflation rate in Morocco has experienced significant fluctuations, particularly in the early 1990s. The graph illustrates periods of high inflation followed by more stable and lower rates, indicative of Morocco’s macroeconomic stabilization policies.
Population Growth: Morocco’s population has steadily increased over the years. In 2022, the population was about 37.5 million, showing a consistent growth trend from previous decades.
This graph depicts the population growth rate in Morocco. There’s a noticeable gradual decline, suggesting a slowing down of population growth over the years. This could be attributed to various social and economic factors, including improved education and health standards.
Human Capital Index : A child born in Morocco today will be 50 percent as productive when she grows up as she could be if she enjoyed complete education and full health. This is lower than the average for Middle East & North Africa region but higher than the average for Lower middle income countries. Between 2010 and 2020, the HCI value for Morocco increased from 0.47 to 0.50.
What is the GDP of Morocco ?
As of 2024, the Gross Domestic Product (GDP) of Morocco is approximately 157.4 billion U.S. dollars. This represents the total value of all goods and services produced in Morocco within that year.
The figure is an increase from previous years, indicating economic growth in the country.
![Morocco: Gross domestic product (GDP) in current prices from 1988 to 2028 (in billion U.S. dollars)](https://www.statista.com/graphic/1/502797/gross-domestic-product-gdp-in-morocco.jpg)
The graph above illustrates the Gross Domestic Product (GDP) of Morocco from 1980 to 2022, measured in billions of US dollars (Purchasing Power Parity). It provides a visual representation of Morocco’s economic growth over this period.
Here’s our Key Observations:
- Steady Growth: Morocco’s GDP has shown a consistent upward trend since 1980, indicating steady economic growth.
- Acceleration in the 2000s: There is a noticeable acceleration in GDP growth from the early 2000s, highlighting the impact of economic reforms and increased foreign investment.
- Recent Fluctuations: The recent years show some fluctuations. The slight dip in 2020 reflects the global economic impact of the COVID-19 pandemic, followed by a rebound in 2021 and 2022.
What are the competitive advantages of Morocco?
- Trade Agreements and Market Access: Morocco has established a strong legal framework and several free trade agreements with countries and regions, including the UAE, Egypt, Jordan, Tunisia, Turkey, the United States, and European Free Trade Association states. Its future adhesion to the ECOWAS is expected to expand its market access by 300 million consumers.
- Foreign Direct Investment (FDI): Morocco ranks as the third most attractive country for FDI in Africa, capturing more than 9% of the continent’s FDI flows.
- Export Growth and Diversification: Over the past five years, Morocco has seen an average annual export growth of almost 7%, diversifying its product basket and markets, with a focus on higher technology levels.
- Regional Hub Development: Leveraging its geographic position and political stability, Morocco has become a regional hub for international companies, offering economic incentives and favorable macro-economic policies.
- Industrial Growth: The automotive industry, new to Morocco’s economy, has become a leading export sector, creating significant employment and local integration, with plans for further expansion by 2023.
What are the economy sector in Morocco ?
Morocco’s economy is a dynamic blend of agriculture, industry, and services, each playing a pivotal role in the nation’s economic landscape.
Agriculture, long-standing as a cornerstone of the Moroccan economy, has shown resilience despite the challenges posed by climate variability. This sector’s contribution is significant, especially considering the country’s recent experiences with drought and its impact on agricultural output.
The industrial sector in Morocco is diverse, encompassing areas such as mining and processing of phosphates, high tech, food processing, leather goods, textiles, construction, tourism, and automobile manufacturing.
These industries not only contribute to the domestic economy but also position Morocco as a significant player in the global market, particularly in exports of clothing, textiles, automobiles, and various other goods.
Services, including tourism and transport, have performed well and are integral to the economy. The recovery and growth in these sectors are notable, especially in the context of the global economic environment and the recent pandemic’s impact. The services sector’s resilience and growth potential are indicative of Morocco’s broader economic stability and potential for future development.
In essence, the Moroccan economy, with its diverse mix of agriculture, industry, and services, demonstrates a robust and adaptable economic structure. This blend not only underpins the current economic performance but also lays a foundation for future growth and prosperity.
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
Employment By Sector (in % of Total Employment) | 34.6 | 22.8 | 42.6 |
Value Added (in % of GDP) | 10.7 | 27.2 | 52.3 |
Value Added (Annual % Change) | -15.3 | -0.4 | 5.3 |
Does Morocco have good agriculture?
Yes, Morocco has a well-developed agricultural sector that plays a significant role in the country’s economy, employing about 40% of the nation’s workforce.
The sector is diverse, producing :
- wheat
- sugar beet
- barley
- potato
- olive
- tomato
- tangerine
- orange
- and other crops.
Morocco’s agricultural output includes significant quantities of these products, with notable ranks in global production for some, such as olive and tangerine. The sector faces challenges from climatic fluctuations and trade liberalization pressures.
Moroccan agricultural production combines traditional methods with modern technologies, and the country aims to enhance the sector through strategic initiatives like the “Generation Green” plan.
The plan focuses on developing a new agricultural middle class and promoting human and social development through agriculture. The country’s diverse climate and geography enable the cultivation of various crops, although the sector is sensitive to climatic conditions, especially rainfall variability.
What is Morocco’s major industries?
The Moroccan industrial sector is experiencing significant growth, with a diverse range of activities contributing to its economy.
Key sectors include manufacturing, automotive, textiles, and mining.
Manufacturing focuses on processing raw materials for export and producing consumer goods for domestic markets, including the significant production of phosphates, food processing, and textiles.
The automotive sector, led by major manufacturers like Renault and PSA, is a leading export sector and a major job creator.
Textile and clothing exports, particularly to the European Union, are also substantial.
The mining sector, dominated by phosphate production, is a crucial pillar of the economy
Moroccan phosphate and how it is used ?
Moroccan phosphate is a key resource in the global agricultural sector. Morocco is one of the world’s largest producers and exporters of phosphate and phosphate-based products.
Phosphate rock from Morocco is primarily used to produce fertilizers that are crucial for increasing agricultural productivity. These fertilizers help in supplying essential nutrients to crops, enhancing soil fertility, and improving crop yields.
![Moroccan phosphate](https://argancharm.com/wp-content/uploads/Moroccan-phosphate.webp)
What is Morocco Service sector like ?
Morocco’s service sector is a crucial part of its economy, encompassing a wide range of activities. This sector includes tourism, banking and finance, telecommunications, retail, and public services. It is characterized by its diversity and contribution to employment and GDP
The tourism industry, in particular, is a significant component, drawing visitors with Morocco’s rich culture, history, and natural beauty.
What is Morocco Tourism Industry Like?
Morocco’s tourism industry is vital, attracting visitors with its rich cultural heritage, historic sites, and scenic landscapes. It contributes significantly to the economy and employment.
Morocco’s tourism industry has experienced significant growth, breaking records in visitor numbers. In the first eleven months of 2023, the country welcomed a remarkable 13.2 million tourists. This surge in tourism reflects Morocco’s increasing appeal as a travel destination, showcasing its rich cultural heritage, diverse landscapes, and strategic efforts to boost the sector.
What is Morocco Banking Industry Like?
The Moroccan banking industry is a significant part of the country’s economy. It includes major banks such as Attijariwafa Bank, Bank of Africa, Credit Immobilier et Hotelier (CIH), and Societe Generale.
There has been a significant push towards digital banking, with many banks offering online and mobile banking services. This shift enhances convenience for customers, including tourists, who can manage their finances and perform transactions digitally.
For tourists, the Moroccan banking sector offers a range of services including currency exchange, credit and debit card services, and ATMs widely available in urban and tourist areas.
What is Morocco Telecommunications Industry Like?
Morocco’s telecommunications industry is advanced and dynamic, with a mobile market penetration rate of 137.5%. The sector is dominated by three main operators:
Maroc Telecom, Orange, and Inwi, offering extensive 4G LTE infrastructure and a broad range of services including mobile data.
As of 2023, there are approximately 50.19 million active cellular connections, equivalent to 133.3% of the total population. The telecommunications market size in Morocco was valued at $3.5 billion in 2023 and is expected to grow steadily.
For tourists, this advanced telecommunications infrastructure means easy access to mobile services and high-speed internet, facilitating communication and navigation during their stay in Morocco. The upcoming introduction of 5G networks is anticipated to further enhance connectivity options.
What is the main source of energy in Morocco?
The main source of energy in Morocco has historically been fossil fuels, but there has been a significant shift towards renewable energy sources. The country has been investing heavily in solar and wind energy, aiming to increase the share of renewables in its energy mix.
The country’s electricity production in 2022 was derived from various sources: coal (37.25%), hydroelectricity (16.70%), fuel oil (7.03%), natural gas (17.72%), wind (13.48%), and solar (7.82%).
Renewable energy accounted for 38% of the electrical capacity mix at the end of 2022. The Moroccan government is focusing on increasing the use of renewable sources for electricity production, aiming to have renewable energy sources provide more than 52% of the total installed capacity by 2030.
![Moroccan renewable energy Noor station](https://argancharm.com/wp-content/uploads/Moroccan-renewable-energy-Noor-station-1024x576.webp)
The Noor Solar Power Station in Morocco is one of the world’s largest concentrated solar power (CSP) plants.The Noor complex plays a crucial role in Morocco’s goal to generate 42% of its electricity from renewable sources
Tourists visiting Morocco can benefit from this shift towards renewables, as it contributes to a cleaner environment and sustainable tourism practices
What is the trade strategy of Morocco?
Morocco also aims to boost exports and foster foreign investment through trade agreements and economic partnerships,strengthening ties with both traditional partners in Europe and emerging markets in Africa and Asia is a key aspect of this strategy.
According to the latest figures Morocco is very open to foreign trade, which represents 87% of its GDP (World Bank, latest data available).
The country’s main trade partners are :
- Spain (21.5%)
- France (20.4%),
- Italy (4.3%)
- Germany (4.1%).
Spain is also the main supplier (15.7%), ahead of China (11.7%), France (10.5%), the U.S. (6.4%) and Turkey (5.8% – data OdC for 2021).
While European countries are the main trading partners (59.4% of total exports, 49% of imports), Morocco has also been strengthening its commercial integration with the rest of Africa, namely through the ratification of the African Continental Free Trade Area Agreement.
The country’s strategic location as a gateway between Europe and Africa plays a key role in its trade dynamics.
What is the main trade of Morocco?
Morocco’s main trade involves exporting goods like automotive parts, electrical equipment, phosphates, textiles, and agricultural products such as fruits and vegetables.
On the other hand the country relies on imports to support its industrial sectors and to meet the demands of its growing consumer market.
These trade activities are crucial for Morocco’s economic growth and development, with the country playing a key role in the global trade of these commodities.
What does Morocco export ?
Morocco’s exports are diverse, including agricultural products like citrus fruits and vegetables, textiles, and phosphates.
Exports in Morocco increased to 30563 MAD Million in August from 29236 MAD Million in July of 2023. Exports in Morocco averaged 14909.02 MAD Million from 1998 until 2023, reaching an all time high of 41054.00 MAD Million in September of 2022 and a record low of 4878.90 MAD Million in April of 1998. source: Office des Changes
what are Morocco’s main exports ?
The three leading exports are agricultural produce (citrus fruits and market vegetables), semi-processed goods and consumer goods (including textiles), and phosphates and phosphate products.
But here’s a breakdown of Moroccan main exports by categories :
Morocco Exports By Category | Value | Year |
Fertilizers | $7.69B | 2022 |
Vehicles other than railway, tramway | $6.35B | 2022 |
Electrical, electronic equipment | $5.97B | 2022 |
Articles of apparel, not knit or crocheted | $2.72B | 2022 |
Inorganic chemicals, precious metal compound, isotope | $2.38B | 2022 |
Edible fruits, nuts, peel of citrus fruit, melons | $1.87B | 2022 |
Edible vegetables and certain roots and tubers | $1.67B | 2022 |
Salt, sulphur, earth, stone, plaster, lime and cement | $1.61B | 2022 |
Fish, crustaceans, molluscs, aquatics invertebrates | $1.59B | 2022 |
what does Morocco export to Europe ?
Here’s a list of top Morocco exports to Europe :
- Spain: Imported goods worth $8.28 billion from Morocco in 2022. This makes Spain the largest European importer of Moroccan products.
- France: The value of imports from Morocco was $8.06 billion, positioning France as another key European trading partner for Morocco.
- Italy: Imported Moroccan goods valued at $1.88 billion.
- United Kingdom: Morocco imported goods worth $1.60 billion from Morocco.
- Germany: Imported $1.33 billion worth of goods from Morocco.
- Netherlands: The value of imports from Morocco was $880.43 million.
- Belgium: Imported goods from Morocco valued at $799.20 million.
- Portugal: The value of imports from Morocco was $591.25 million.
How important is Morocco to Europe?
Morocco holds significant importance to Europe due to its strategic geographic location, serving as a gateway between Europe and Africa. The country is a key trading partner for Europe.
The country also collaborates with Europe on various fronts, including migration and security, enhancing its geopolitical importance to the European Union.
What does Morocco import ?
Imports in Morocco decreased to 54621 MAD Million in August from 57408 MAD Million in July of 2023. Imports in Morocco averaged 26832.86 MAD Million from 1998 until 2023, reaching an all time high of 72435.00 MAD Million in June of 2022 and a record low of 6424.40 MAD Million in January of 1999. source: Office des Changes
Morocco imports a variety of goods to support its economy and meet domestic demands. Key imports include crude petroleum and refined oil products, machinery and equipment, and electronic equipment.
What commodities does Morocco import?
Morocco’s imports primarily consist of a range of commodities essential for its economic and industrial activities.
- Crude petroleum and refined oil products, which are crucial for the country’s energy needs.
- Machinery and industrial equipment, vital for the development of its manufacturing sectors.
- Electronic equipment and components, necessary for technology and communication sectors.
- Vehicles and automotive parts, supporting both consumer markets and the automotive industry.
- Plastics and chemicals, used in various manufacturing and industrial processes.
What are Morocco’s top 5 imports?
Major imports are semimanufactures and industrial equipment, crude oil, and food commodities.
Morocco Imports By Category | Value | Year |
Mineral fuels, oils, distillation products | $15.08B | 2022 |
Electrical, electronic equipment | $6.01B | 2022 |
Machinery, nuclear reactors, boilers | $5.64B | 2022 |
Vehicles other than railway, tramway | $5.46B | 2022 |
Cereals | $3.68B | 2022 |
Is Morocco doing well economically?
Yes, As of last April 2023, Morocco’s economy was showing signs of recovery and growth, especially after the challenges posed by the COVID-19 pandemic.
But Morocco also faces challenges such as unemployment and economic disparities. The overall economic health of a nation can be complex and is influenced by various domestic and global factors.
Is Morocco economically stable?
Yes, Morocco’s economy has faced several challenges, particularly in 2022, yet it has shown signs of resilience and recovery.
The country suffered from various overlapping shocks, including a severe drought and rising international commodity prices, partly fueled by geopolitical tensions such as Russia’s invasion of Ukraine.
These events led to a significant economic deceleration, with real GDP growth falling from 8% in 2021 to 1.3% in 2022.
However, the economy is rebounding in 2023, supported by a partial recovery in agricultural production, a rebound in the tourism sector, and positive contributions from net exports. The first half of 2023 saw an increase in real GDP annual growth to around 3%.
Is Morocco in a recession?
No, Based on the latest available data, Morocco is not currently in a recession. The economy experienced a deceleration in 2022 but has shown signs of recovery in 2023, with a positive growth trajectory.
This improvement, marked by increased GDP growth and a stabilizing inflation rate, indicates that the economy is recovering rather than contracting further into a recession.
What are the market challenges in Morocco?
The Moroccan government faces various market challenges, including :
- Environmental Factors: Severe drought conditions significantly impacted the economy, particularly the agricultural sector, which is a vital part of Morocco’s economy.
- Global Economic Dependency: Morocco’s economy is influenced by global economic conditions. The international commodity prices’ fluctuation, particularly those affected by geopolitical tensions like Russia’s invasion of Ukraine, have impacted Morocco’s economy. This dependency makes Morocco vulnerable to external economic shocks.
- Tourism Sector Challenges: The tourism industry, a crucial contributor to Morocco’s GDP, has faced challenges due to external factors like the COVID-19 pandemic and natural disasters like the Al Haouz earthquake. These events can deter tourists, affecting the sector significantly.
What are the risks of doing business in Morocco?
Some of the main challenges faced by businesses in Morocco include a lack of transparency in government procurement, slow bureaucratic decision-making and procedures, and restrictions on pre-payments for imports. Companies often encounter delays in receiving payments from the government. The legal and banking systems in Morocco, which are influenced by a mix of French, Spanish, and Islamic laws, can be complex for foreign businesses to navigate.
Furthermore, U.S. exporters requiring 100% advance payment often face difficulties due to restrictions on prepayments in Morocco.
What is Morocco Inflation Rate?
In early 2023, Morocco experienced a peak in inflation rates, which impacts the cost of living and doing business. While the rates are on a downward trend, managing inflation remains a challenge for economic stability.
Morocco’s inflation rate for 2023 is expected to average around 6.1%, according to forecasts from Bank Al-Maghrib, Morocco’s central bank. This rate is a decrease from the 6.6% observed in 2022.
Inflation in Morocco reached its peak at 10.1% in February 2023 but has shown a gradual deceleration since then, reaching 4.3% in October. The anticipated dissipation of external inflationary pressures and the implementation of fiscal measures are expected to contribute to this decline. The inflation rate is projected to further decrease to around 2.4% in both 2024 and 2025
Why is inflation so high in Morocco?
The high inflation rate in Morocco can be attributed to various market challenges, including rising global commodity prices, especially for energy and food, and the economic impact of events like the COVID-19 pandemic.
Is Morocco a developed country?
No, Morocco is generally classified as a developing country. It has made significant progress in various sectors but still faces challenges typical of developing nations, such as economic diversification, reducing unemployment, and improving education and healthcare systems. In 2021, Morocco ranked 123rd out of 191 countries in the world on the Human Development Index (HDI)
Is Morocco a rich country?
No, Morocco is not typically classified as a rich country. It has a growing economy with strengths in sectors like agriculture, tourism, and manufacturing, but it still faces challenges in terms of income disparity and poverty.
Is Morocco a third-world country?
No, The term “Third World country” is outdated and not used in modern economic analysis. It originally referred to countries not aligned with NATO or the Communist Bloc during the Cold War. Today, Morocco is considered a developing country, with efforts to improve its economy and infrastructure.
What is the average income in Morocco?
As of 2024, the average income in Morocco is approximately 233,000 MAD per year, which translates to around USD 23,290 based on the exchange rates of May 2023. This average income is less than most developed countries, reflecting the economic landscape of Morocco.
These figures are influenced by factors such as job title, industry, education level, and years of experience.
What is the average wage in Morocco?
The average wage in Morocco stands at about 16,700 MAD per month. Salary ranges in Morocco can vary widely, from a minimum salary of around 4,910 MAD to a maximum salary of 86,700 MAD per month.
What is the minimum wage in Morocco?
As of 2024, the minimum wage in Morocco also called (SMIG) is 3,500 MAD (approximately USD 350) per month in the public sector.
2,970 MAD (around USD 297) in the private sector.
For agricultural workers, the minimum wage is set at 2,094 MAD (about USD 209) per month.
What is the unemployment rate in Morocco?
As of the third quarter of 2023, Morocco’s unemployment rate rose to 13.5%, up from 11.4% in the same quarter of the previous year (2022).
The national unemployment rate increased in both urban (from 15% to 17%) and rural areas (from 5.2% to 7%). This rise in unemployment led to a total of 1,625,000 people being unemployed in Morocco during this period.
The increase was seen across various sectors, including agriculture, services, and construction, although there were some job gains in the industry sector.
What is the youth unemployment rate in Morocco?
As of the third quarter of 2023, the youth unemployment rate in Morocco was reported to be 38.2%.
This rate indicates the percentage of the Moroccan youth labor force aged 15-24 that was without work but available for and actively seeking employment.
This figure reflects the challenges faced by the younger population in finding employment in the Moroccan job market.
Why is unemployment so high in Morocco?
Morocco’s high unemployment, especially among youth, is due to several factors.
The pandemic has had a significant impact on the economy, leading to job losses in various sectors. The service sector, including tourism, which is a major contributor to Morocco’s economy, was particularly affected.
Rapid labor force growth outpaces job creation. There’s also a skill mismatch – the education system doesn’t always align with market needs.
Limited industrial diversification means fewer job types are available.
How much is Morocco’s debt?
As of December 2022, Morocco’s national government debt reached approximately 91.1 billion USD, Morocco’s government debt accounted for 71.6% of its nominal GDP, a peak increase from the 64.1 billion USD reported in the previous year.
A high debt-to-GDP ratio can indicate significant borrowing by the government compared to the size of the economy.
This level of external debt reflects the economic challenges and funding needs of the country. The management of this debt is crucial for Morocco’s economic stability and growth
Here’s some key information about Morocco Government Debt :
- National Government Debt: Approximately 91.1 billion USD.
- Debt-to-GDP Ratio: The debt accounted for about 71.6% of Morocco’s nominal GDP.
- External debt was 50.9% of GDP in Morocco in 2022, compared to 33.4% of GDP ten years earlier. External debt averaged USD 43.2% of GDP over the last decade, which was above the average for Middle East & North Africa of 26.0%.
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
External Debt (% of GDP) | 41.3 | 42.4 | 50.8 | 55.4 | 69.5 | 71.6 |
External Debt (USD bn) | 48.8 | 54.7 | 61.7 | 67.1 | 66.6 | 91.1 |
Morocco economic reforms
Morocco has launched an ambitious program of transformative economic reforms in response to the challenges posed by the COVID-19 pandemic, Named Strategic Investment Fund (Mohammed VI Fund) to support the private sector, and for the restructuring of Morocco’s network of State Owned Enterprises.
In addition to that, Morocca has steep up Business Modernization Reforms to improve the business environment and support SMEs, as well as advancing public sector governance, transparency, and accountability.
These reforms aim to improve market competition, boost private sector dynamism, and enhance human capital formation. If successfully implemented, these measures could lead to stronger and more equitable economic growth in Morocco.
Is Morocco a good place to do business?
Yes, Morocco presents several opportunities and challenges for doing business. The country’s proactive international market, strategic location, skilled labor force, government stability, and lower labor costs are significant advantages.
However, challenges include the collectivistic nature of Moroccan society, the importance of relationships in business dealings, the influence of Islam on daily life and business practices,These factors make Morocco a complex but potentially rewarding environment for business ventures.
What is the development strategy of Morocco?
Morocco’s development strategy focuses on strengthening and making growth more inclusive. The strategy involves improving infrastructure, diversifying production and export bases, attracting foreign investment, and modernizing public administration governance.
Morocco is adopting a new model of development through national debates and reforms, including revamping the social protection system and the business model of state-owned enterprises
Morocco Workers remittances
In 2023, Moroccan expatriates sent a record high of more than 105.46 billion MAD (Moroccan Dirham) in remittances during the first 11 months, marking a 4.4% increase compared to the previous year.
This substantial amount underscores the significant contribution of Moroccan expatriates to the national economy. The balance of trade in services contributed to an increase in the surplus, reaching 124.63 billion MAD, with travel receipts alone amounting to 97.4 billion MAD by the end of November 2023, a 15.8% increase year-on-year.
Does Morocco charge tax?
Yes, Morocco charges taxes. The Moroccan tax system includes various forms of taxes, such as income tax, corporate tax, value-added tax (VAT), and customs duties.
Do you have to pay tax in Morocco?
In Morocco, tax compliance is mandatory for residents and businesses operating within the country. The Moroccan tax system is designed to support public finances and economic development while providing necessary services and infrastructure.
How much tax do you pay in Morocco?
In Morocco, tourists and expatriates planning to do business face various tax considerations. Income tax is applicable if you are physically present in Morocco and have a home there.
The tax rates are progressive, ranging from 0% for income less than 30,000 MAD to 38% for income over 180,001 MAD.
For businesses, corporate tax rates depend on the net worth of the business, with rates varying from 10% to 31%, and a higher rate for credit institutions.
Value-added tax (VAT) generally is set at 20%, with some items having reduced rates.
What is the currency reform in Morocco?
The Moroccan currency liberalization process began in January 2018 when the central bank widened the dirham’s fluctuation band against a currency basket (60% euro and 40% US dollar) from ±0.3% to ±2.5%.
This move marked a transition towards a more flexible exchange rate system.
The goal was to improve Morocco’s economic resilience, especially against external financial shocks, and enhance the competitiveness of its exports. The change was part of a broader set of economic reforms aimed at stabilizing the economy and fostering sustainable growth.
Is the Moroccan dirham going down?
No, but The Moroccan Dirham (MAD) has experienced fluctuations against major currencies like the US Dollar (USD) and the Euro (EUR).
Is Moroccan currency stable?
At this point, the dirham’s trajectory against the euro appeared more stable, with some forecasts suggesting it might gain value against the euro in the near future. The overall stability of the Moroccan dirham is influenced by various factors, including Morocco’s economic performance, monetary policies of major trading partners, and its trade deficit and foreign exchange reserves.
How much is Moroccan currency?
As of the latest data:
- 1 Moroccan Dirham (MAD) is equivalent to approximately 0.0922152 Euros (EUR).
- 1 Euro (EUR) is equivalent to approximately 10.844 Moroccan Dirhams (MAD).
- 1 Moroccan Dirham (MAD) is equivalent to approximately 0.100422 US Dollars (USD).
- 1 US Dollar (USD) is equivalent to approximately 9.958 Moroccan Dirhams (MAD)
Where to get Morrocan currency?
Most banks in Morocco and some abroad offer currency exchange services where you can exchange your home currency for dirhams.
Or you can get Moroccan Dirhams from :
- Use Currency Exchange Bureaus: These are found in airports, major cities, and tourist areas in Morocco.(Wafaa cash, cash plus, etc..)
- ATMs are widely available in Morocco and can dispense dirhams directly from your foreign bank account.
- Use Credit and Debit Cards: While not directly a way to get cash, using cards for transactions is common in urban areas.