Moroccan Economy
Economy - overview: Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In the 1980s Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 40% of electricity output by 2020. Key sectors of the economy include agriculture, tourism, aerospace, phosphates, textiles, apparel, and subcomponents. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the United States in 2006 and an Advanced Status agreement with the European Union in 2008. Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. In 2011 and 2012, high prices on fuel - which is subsidized and almost entirely imported - strained the government's budget and widened the country's current account deficit. In 2014, Morocco ended subsidies on diesel, gasoline, and fuel oil which have improved its budget deficit. Subsidies on sugar, butane gas, and flour remain. Morocco’s current account deficit has also benefit from the fall in oil prices. Key economic challenges for Morocco include reforming the education system and the judiciary, while increasing the competitiveness of the private sector.
GDP (purchasing power parity): $252.4 billion (2014 est.)
GDP (official exchange rate): $109.2 billion (2014 est.)
GDP - real growth rate: 2.9% (2014 est.)
GDP - per capita (PPP): $7,600 (2014 est.)
GDP - composition by sector: agriculture: 14%
industry: 24.9%
services: 61.1% (2014 est.)
Labor force: 12 million (2014 est.)
Labor force - by occupation: agriculture: 39.1%
industry: 20.3%
services: 40.5% (2014 est.)
Unemployment rate: 9.1% (2014 est.)
Household income or consumption by percentage share: lowest 10%: 2.7%
highest 10%: 33.2% (2007)
Investment (gross fixed): 32.5% of GDP (2009 est.)
Budget: revenues: $29.4 billion
expenditures: $34.99 billion (2014 est.)
Public debt: 76.6% of GDP (2014 est.)
Inflation rate (consumer prices): 0.4% (2014 est.)
Central bank discount rate: 6.5% (31 December 2010)
Commercial bank prime lending rate: 6% (31 December 2014 est.)
Agriculture - products: barley, wheat, citrus fruits, wine, vegetables, olives; livestock
Industries: phosphate rock mining and processing, food processing, leather goods, textiles, construction, energy, tourism
Industrial production growth rate: 2.7% (2014 est.)
Electricity - production: 23.65 billion kWh (2011 est.)
Electricity - consumption: 25.14 billion kWh (2011 est.)
Electricity - exports: 818 million kWh (2012 est.)
Electricity - imports: 5.66 billion kWh (2012 est.)
Oil - production: 5,500 bbl/day (2013 est.)
Oil - consumption: 187,000 bbl/day (2008 est.)
Oil - exports: 0 bbl/day (2010 est.)
Oil - imports: 122,900 bbl/day (2010 est.)
Oil - proved reserves: 680,000 bbl (1 January 2014 est.)
Natural gas - production: 62.03 million cu m (2012 est.)
Natural gas - consumption: 1.084 billion cu m (2012 est.)
Natural gas - exports: 0 cu m (2012 est.)
Natural gas - imports: 1.022 billion cu m (2012 est.)
Natural gas - proved reserves: 1.444 billion cu m (1 January 2014 est.)
Current account balance: -$6.384 billion (2014 est.)
Exports: $19.56 billion (2014 est.)
Exports - commodities: clothing and textiles, electric components, inorganic chemicals, transistors, crude minerals, fertilizers (including phosphates), petroleum products, citrus fruits, vegetables, fish
Exports - partners: Spain 22%, France 20.7%, Brazil 4.6%, Italy 4.3% (2014)
Imports: $40.04 billion (2014 est.)
Imports - commodities: crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics
Imports - partners: Spain 13.4%, France 13.3%, China 7.6%, US 7%, Saudi Arabia 5.4%, Germany 5.2%, Italy 5%, Russia 4.3% (2014)
Reserves of foreign exchange and gold: $20.97 billion (31 December 2014 est.)
Debt - external: $35.54 billion (31 December 2014 est.)
Stock of direct foreign investment - at home: $49.26 billion (31 December 2013 est.)
Stock of direct foreign investment - abroad: $1.219 billion (31 December 2014 est.)
Exchange rates: Moroccan dirhams (MAD) per US dollar - 8.24 (2014 est.), 8.3803 (2013 est.), 8.6 (2012 est.), 8.0899 (2011 est.), 8.4172 (2010 est.)
economic climate  
Background: According to the International Monetary Fund (IMF), fiscal deficits have edged upwards in Morocco to reach a level of seven per cent of GDP. The deterioration appears to be due to some exhaustion of mineral resources, relied upon for export. In view of future accession to the WTO and of the Association Agreement with the European Union (AAEU), Morocco has been pursuing trade liberalisation and the privatisation of public enterprises. The IMF considers Morocco an emerging market.
Morocco has natural mineral and metal resources but it is heavily dependent on agriculture and fishing; 75 per cent of the agricultural output depends on rainfall. Tourism and textiles are also important industries.
Morocco has the world's largest phosphate reserves and is the third largest exporter of phosphates and its derivatives in the world (phosphoric acid and fertiliser), representing more than a quarter of Moroccan exports.
Agriculture contributes about 15 per cent of GDP. Morocco is a net exporter of fruits and vegetables, and a net importer of cereals.
Export opportunities:  
Update: This page was last updated on 10 November 2015
Sources: CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
http://www.austrade.gov.au
DIBNC Experts Team