ECONOMY

ECONOMY

Overview: Morocco has a developing economy, and its citizens are poorer than their neighbors Algeria and Tunisia in particular. From 1999 to 2004, poverty fell from 19 percent to 15 percent of the population, according to estimates by the World Bank, but poverty remains a serious problem, especially in rural areas, where the rate is higher 25 percent. The unemployment rate, which averaged 10.8 percent in 2004, is particularly acute for young people living in urban areas (as high as 26 percent). To keep unemployment under control and avoid social instability linked, the government is trying to achieve an economic growth rate of 6 percent. To achieve this goal, the government is implementing a program of economic reform and liberalization, including the development of the private sector. However, reform efforts have been, and in 2004, real economic growth was only 3.7 percent. Among other factors, analysts believe that economic growth has been hampered by the excessive dependence of the economy on agriculture and benefit from greater diversification. Moroccan oil industry is smaller and less dynamic than neighboring Algeria, but the sector can benefit from recent efforts to liberalize the rules for the exploration of oil and gas in Morocco. 

Gross Domestic Product (GDP): In 2004, Morocco's GDP was U.S. $ 50.1 billion, and income per capita was $ 1,677 Real GDP growth of 3.7 percent reflects the strength of energy and mines. and to a lesser extent, tourism. Estimates for 2005 put the U.S. GDP $ 52.7 billion, a rate of about 1.8 percent growth. Moroccan relatively slow growth compared to the rest of North Africa as a result of sub-par performance in the agricultural and textile sectors. Economic output in 2004 was allocated to the segments as follows: agriculture, 16.7 percent; industry, 29.7 percent; and services, 53.6 percent. 

State budget: government revenue for 2005 is estimated at 12.940 million U.S. dollars and spending U.S. $ 16.77 million. The deficit would be about 7 percent of gross domestic product (GDP). 

Inflation: In 2004, consumer prices in Morocco was 4.1 percent. 

fishing constituted 16.7 percent of gross domestic product (GDP) but employs 40 percent of the workforce in 2004. agricultural sector is considered volatile, due to their vulnerability to erratic rainfall and other factors, and has been contracted in the last years. The main crops in Morocco, in order of performance, are rice, sugar beet, barley, potatoes, tomatoes and sugar cane. Other agricultural products are wheat, citrus, olives, other vegetables, wine and livestock. Forest production in 2002 consisted of Morocco 926 cubic meters of roundwood and about 83 cubic meters of sawn timber. 

Morocco has important fisheries. In 2002, the total catch, mostly sardines, weighs 896,600 tonnes. In July 2005, Morocco signed a fisheries agreement with the European Union (EU) given limited rights of EU fishing in the territorial waters of Morocco for the first time since 1999. According to the agreement , limited to the capture of up to 60,000 tonnes of small fish in open water to the EU with 119 fishing boats per year. In return, the EU paid Morocco U.S. $ 43 million per year. This agreement is much smaller than its predecessor, which expired in 1999. 

Mines and Minerals Morocco has two thirds of the world's phosphate reserves and is the world's largest exporter of phosphate ore. In 2003, Morocco extracted nearly 22 million tonnes of phosphate. Morocco is a small producer of oil and natural gas. In fact, it is the largest energy importer in North Africa. Crude oil production is approximately 300 barrels per day in 2005. Natural gas production is estimated at 5 million cubic meters in 2003. 

Industry and Manufacturing. Industry constituted 29.7 per cent of GDP in Morocco (GDP) and employs 15 percent of the workforce in 2004 manufacturing, a subset of the industry accounted for 18 percent of GDP. In 2004, manufacturing output was 41.6 percent more than in 1992, indicating a relatively slow due to low investment and productivity in combination with a relatively high rate of growth of wages China or India, for example. The manufacturing sector was the worst performance of textile, which experienced zero growth since 1994, reflecting competition from Asian countries and relatively strong domestic currency. However, the best performance products and paper metallurgical segments increased 90.9 percent and 86.4 percent, respectively, during this period. Morocco is the world's largest exporter of phosphoric acid, which together with fertilizers is the most important product of the chemical industry. Exports of industrial food processing canned fruit, vegetables and fish; the European Union is an important customer. 

Morocco culture

Energy: According to an estimate in January 2006 Company Oil and Gas Journal, Oil Morocco proven total of 1.07 million barrels, while its proven gas reserves total 60 billion cubic feet, although additional reserves can be found in the sea . both figures are significantly lower than those in neighboring Algeria. In fact, Morocco is a net importer of energy, including coal, which is necessary to trigger two large power plants in the country. In 2003, Morocco has produced 17.35 billion kilowatt-hours of electricity but consumed an estimated 17.58 kilowatts-hours. 

Some 17 foreign energy companies exploring power in Morocco. In 2000, Morocco began offering tax incentives for the production of offshore oil and part of foreign oil concessions reserved 25 percent cap government. Full liberalization of the energy sector is expected in 2007. Disputed Western Sahara data places doubt on the legality of contracts for oil and gas in the country. 

Services: Services accounted for 53.6 percent of the economy and employs 45 percent of the labor force in 2004, the liberalization of financial services has been underway since the early 1990s, but fell short of expectations, according to the World Bank .. Despite privatization efforts, many financial institutions remain the property of the government. The last pulse in this campaign is to promote the independence of the central bank and the improvement of banking supervision and regulation. It is urgent, as many banks suffer from extremely high levels of non-performing loans and inadequate reserves. The insurance industry has been simplified by closing several underperforming companies. Morocco has modernized the Casablanca stock market with the introduction of electronic commerce, central clearing, taxes and rules. 

Tourism is the main foreign exchange earner in Morocco. In 2003, Morocco received 2.2 million foreign tourists, with the largest contingents from France, Spain, the United Kingdom, Germany and Italy, in that order. If Morocco is to achieve its goal of boosting tourist numbers to 10 million in 2010, will face a shortage of adequate housing. 

Work: The labor force is estimated at over 11 million in 2005 The distribution of the labor force in 2004 was as follows:. 45 per cent in services, 40 percent in agriculture, 15 percent in industry. In 2004, the unemployment rate in Morocco was 10.8 percent, which represents a gradual but steady improvement over a period of five years. The urban unemployment rate (18.4 percent) was much higher than in rural areas (3.1 percent). In addition, the unemployment rate was much higher for young people living in urban areas than in any other group. In 2002, the unemployment rate among the inhabitants of the city, between the ages of 15 and 24 years was 34.2 per cent and 26.2 per cent for those aged 25 and 34. In 2004, the Moroccan law ordered a working week of 44 hours and a minimum wage of about U.S. $ 223.30 per month for workers in the industry. In the magazine U.S. Department of State, the minimum wage is not sufficient to support a "decent life" for a worker and family. 

Foreign Economic Relations: Morocco's economy is becoming more integrated into the international economic system. On January 1, 2006, a comprehensive bilateral agreement on free trade between Morocco and the United States entered into force. Morocco is the second Arab country to have such an agreement with the United States. In December 1999, Morocco signed a free trade in industrial goods with the European Union (EU) and hopes to participate in a free trade agreement with the EU in 2012. In February 1989, the leaders of Morocco, Algeria, Libya, Mauritania and Tunisia established the Arab Maghreb Union (UMA) to promote free trade zone in North Africa. However, the support of Algeria to self-determination of Western Sahara, Morocco condemning the invasion of Kuwait by Iraq in August 1990 and restrictions on mutual visa for Algeria and Morocco motivated by concerns UMA security is ineffective. Morocco is a member of the World Trade Organization since January 1995. 

Imports: In 2005, imports amounted to U.S. $ 18.2 Morocco million. The main imports were intermediate products; consumer goods; goods; fuels and lubricants; key partners and food, beverages and tobacco, to the U.S. dollar value of imports in 2004. were France, Spain, Italy, Germany, Russia, Saudi Arabia, China and the United States, to value the market. 

Morocco Hotels

Exports: In 2005, Morocco's exports amounted to U.S. $ 9.5 billion. The main exports are manufactured goods; semi-finished products; Food, beverages and tobacco; and raw materials to value in U.S. dollars. Morocco is a world leader in the export of phosphates. The main export partners in 2004 were France, Spain, the United Kingdom, Italy and the United States, to the value of the transaction. The European Union accounted for 71 percent of exports. 

Trade Balance: In 2005 Morocco recorded a deficit in merchandise trade of nearly U.S. $ 9 billion. 

Balance of Payments: In 2005, the balance of payments Morocco went from a small surplus to a deficit of U.S. $ 607.5 million The current account surplus has declined gradually since 2001.. 

External Debt: In 2004 Morocco's external debt stood at U.S. $ 18.7 billion. The estimate for 2005 was U.S. $ 15.6 billion. 

Foreign investment: In 2003 Morocco has experienced net inflows of direct foreign investment of U.S. $ 2.3 billion. Therefore, the United States accounted for only U.S. $ 307 million. However, direct investment in the United States may receive a boost from the US-Morocco Free Trade Agreement, which came into force on 1 January 2006. agreement eliminates barriers to investment and provides for the protection of intellectual property. Another catalyst for foreign direct investment is Morocco's decision to liberalize the rules for the exploration of oil and gas. 

Foreign aid: total historical participation of the World Bank in Morocco through July 2005 is composed of 135 transactions, representing a commitment of nearly U.S. $ 9 billion. In July 2005, the World Bank continues 13 investment projects in Morocco. December 15, 2005, the World Bank loans to financial sector development, the provision of rural water and sanitation investment approved. Each loan amount, expressed in U.S. $ 200 million. Morocco has special drawing rights with the International Monetary Fund (IMF), but received no help of this organization. Since 1953, the U.S. Agency for International Development (USAID) has provided over U.S. Morocco 2,000 million in aid. For the year 2005, USAID assistance to Morocco amounted to U.S. $ 28.2 million. In 2005, the United States has designated Morocco for the first time as a beneficiary of the U.S. Millennium Challenge Account. Morocco was chosen in recognition of its progress in achieving political, economic and educational reform. Morocco is the highest among the Mediterranean countries receiving EU support of the European Union, with commitments totaling over U.S. $ 1.4 billion during 1995-2003. 

Currency and exchange rates: The currency in Morocco is the Moroccan Dirham (MAD). In early May 2006, the exchange rate was approximately U.S. $ 1 = MAD8.7. 

Year: calendar year.