Morocco Economy Profile 2009

Economy - overview

Moroccan economic policies brought macroeconomic stability to the country in the early 1990s but have not spurred growth sufficient to reduce unemployment - nearing 20% in urban areas - despite the Moroccan Government's ongoing efforts to diversify the economy. Morocco's GDP growth rose to 5.9% in 2008, with the economy recovering from a drought in 2007 that severely reduced agricultural output and necessitated wheat imports at rising world prices. Moroccan authorities understand that reducing poverty and providing jobs are key to domestic security and development. In 2005, Morocco launched the National Initiative for Human Development (INDH), a $2 billion social development plan to address poverty and unemployment and to improve the living conditions of the country's urban slums. Moroccan authorities are implementing reform efforts to open the economy to international investors. Despite structural adjustment programs supported by the IMF, the World Bank, and the Paris Club, the dirham is only fully convertible for current account transactions. In 2000, Morocco entered an Association Agreement with the EU and, in 2006, entered a Free Trade Agreement (FTA) with the US. Long-term challenges include improving education and job prospects for Morocco's youth, and closing the income gap between the rich and the poor, which the government hopes to achieve by increasing tourist arrivals and boosting competitiveness in textiles.

GDP (purchasing power parity)

$136.6 billion (2008 est.)
$129.6 billion (2007 est.)
$125.6 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$86.39 billion (2008 est.)

GDP - real growth rate

5.4% (2008 est.)
3.2% (2007 est.)
7.8% (2006 est.)

GDP - per capita (PPP)

$4,000 (2008 est.)
$3,800 (2007 est.)
$3,800 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 15.7%
industry: 30.1%
services: 54.1% (2008 est.)

Population below poverty line

15% (2007 est.)

Labor force

11.29 million (2008 est.)

Labor force - by occupation

agriculture: 44.6%
industry: 19.8%
services: 35.5% (2006 est.)

Unemployment rate

10% (2008 est.)
9.8% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.7%
highest 10%: 33.2% (2007)

Distribution of family income - Gini index

40 (2005 est.)
39.5 (1999 est.)

Investment (gross fixed)

32.1% of GDP (2008 est.)

Budget

revenues: $26.16 billion
expenditures: $27.93 billion (2008 est.)

Public debt

59.7% of GDP (2008 est.)
70.2% of GDP (2004 est.)

Inflation rate (consumer prices)

3.9% (2008 est.)
2% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
3.25% (31 December 2007)

Commercial bank prime lending rate

NA%

Stock of money

$NA (31 December 2008)
$67.42 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$16.23 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$71.9 billion (31 December 2007)

Industries

phosphate rock mining and processing, food processing, leather goods, textiles, construction, tourism

Industrial production growth rate

4.7% (2008 est.)

Electricity - production

21.88 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 95.4%
hydro: 4.6%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

19.58 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

1.998 billion kWh (2006 est.)

Oil - production

3,746 bbl/day (2007 est.)

Oil - consumption

179,700 bbl/day (2006 est.)

Oil - imports

192,500 bbl/day (2005 est.)

Oil - exports

24,360 bbl/day (2005 est.)

Oil - proved reserves

100 million bbl (1 January 2008 est.)

Natural gas - production

60 million cu m (2006 est.)

Natural gas - consumption

60 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

1.557 billion cu m (1 January 2008 est.)

Current Account Balance

-$4.822 billion (2008 est.)
-$224 million (2007 est.)

Agriculture - products

barley, wheat, citrus, wine, vegetables, olives; livestock

Exports

$20.6 billion (2008 est.)
$15.15 billion (2007 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 18.7%, France 17.1%, Brazil 6.9%, US 4.4%, Belgium 4.3%, Italy 4.2% (2008)

Imports

$39.16 billion (2008 est.)
$29.32 billion (2007 est.)

Imports - commodities

crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics

Imports - partners

France 17%, Spain 14.2%, Italy 6.8%, Saudi Arabia 6.8%, China 6.3%, Germany 5.9%, US 4.1% (2008)

Reserves of foreign exchange and gold

$22.72 billion (31 December 2008 est.)
$24.72 billion (31 December 2007 est.)

Debt - external

$21.22 billion (31 December 2008 est.)
$19.91 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$40.92 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad

$887 million (31 December 2008 est.)
$1.337 billion (31 December 2007 est.)

Market value of publicly traded shares

$65.75 billion (31 December 2008)
$75.49 billion (31 December 2007)
$49.36 billion (31 December 2006)

Economic aid - recipient

ODA, $651.8 million (2005)

Currency (code)

MAD

Currency (code)

Moroccan dirham (MAD)

Exchange rates

Moroccan dirhams (MAD) per US dollar - 7.526 (2008 est.), 8.3563 (2007), 8.7722 (2006), 8.865 (2005), 8.868 (2004)

Fiscal year

calendar year