Economy of Morocco

The Morocco's economy is considered one governed by the law of the relatively liberal economy supply and demand. Since 1993, the country has followed a policy of privatization of certain economic sectors which used to be in the hands of government. Morocco has become a major player in the economic affairs of Africa, and is the fifth African economy by GDP (PPP). The World Economic Forum ranks Morocco as the second most competitive economy in North Africa behind Tunisia in its Competitiveness Report 2009 Africa. Morocco has also been ranked as the first African country by the Intelligence Unit of The Economist "index of quality of life, ahead of South Africa. 

Difficult governance reforms and steady yearly growth in the region of 5.4% between 2000 and 2007, including the year-over-year growth of 4.9% in 2003-2007 the Moroccan economy is much more robust that a few years ago. Economic growth is far more diversified, with new service and industrial poles, like Casablanca and Tangier, developing. The agriculture sector is being rehabilitated, which in combination with good rains led to a growth of over 20% in 2009. 

The services sector for just over half of GDP and industry, made up of mining, construction and manufacturing, is an additional quarter. The sectors who recorded the highest growth are textiles, telecommunications and tourism. Morocco, however, still depends to an excessive degree in agriculture. The sector accounts for only about 14% of GDP but employs 40-45% of the Moroccan population. With a semi-arid climate, it is difficult to assure good rainfall and Morocco's GDP varies depending on the weather. Fiscal prudence has allowed for consolidation, both the budget deficit and debt as a percentage of GDP. 

In 2009 Morocco was ranked among the top thirty countries in the field of relocation. Morocco opened its doors to the relocation in July 2006 as a component of the development initiative Plan Emergence, and has so far attracted about half the French call centers who went to sea to day and a number of Spaniards. According to experts, multinational companies are attracted by the geographical and cultural proximity of Morocco to Europe, in addition to your time zone. In 2007, there were about 200 call centers, including 30 large, employing a total of over 18,000 people. 

The economic system of the country presents several facets. It is characterized by a large opening towards the outside world. France remains the largest trading partner (supplier and customer) of Morocco. France is also the largest foreign investor in Morocco creditor. In the Arab world, Morocco has the second largest non-oil GDP, behind Egypt, in 2005. 

Since the early 1980s the Moroccan government has made an economic program toward accelerating real economy growth with the support of the International Monetary Fund, the World Bank and the Paris Club. The country's currency, the dirham, is now fully convertible for current account transactions; Financial sector reforms have been implemented; and state enterprises are being privatized. 

The main resources of the Moroccan economy are agriculture, phosphates, and tourism. Sales of fish and seafood are also important. Industry and mining account for about one third of the annual GDP. Morocco is the third largest producer of phosphates (after the United States and China), and fluctuations of phosphates on the international market prices greatly influence Morocco's economy. Tourism and workers' remittances have played a critical role since independence. The production of textiles and clothing is part of a growing sector of the manufacturing accounted for about 34% of total exports in 2002, employing 40% of the industrial workforce. The government wishes to increase textile and clothing exports from $ 1.27 billion in 2001 to $ 3.29 billion in 2010. 

The high cost of imports, especially of petroleum imports, is a major problem. Another problem is chronic erratic rainfall, which produces drought or sudden floods; in 1995, the worst drought in the country in 30 years forced Morocco to import grain and affected the economy. Another drought occurred in 1997 and in 1999-2000. Declining incomes due to drought caused GDP fall of 7.6% in 1995, 2.3% in 1997 and 1.5% in 1999. During the years between drought, good rains crops to market. Good rainfall in 2001 led to a 5% GDP growth. Morocco suffers both from unemployment (9.6% in 2008), and a large estimated at $ 20 billion, or half of GDP in 2002 external debt. 

Reliable in the fight against terrorism, drug trafficking and illegal immigration European ally, Morocco received an "advanced status" with the EU in 2008, to strengthen bilateral trade relations with Europe. Among the various free trade agreements that Morocco has ratified with its principal economic partners, are the Agreement on free trade Euro-Mediterranean Agreement with the European Union with the objective of integrating the European Free Trade Association trade area by 2012; the Agadir Agreement, signed with Egypt, Jordan and Tunisia, within the framework of the installation of the Greater Arab Free Trade; the Free Trade Agreement between the United States and Morocco with the United States, which came into force on January 1, 2006, and lately the agreement of free exchange with Turkey.