Destination Morocco

Economy Morocco

Economy - overview:

Morocco faces problems typical for developing countries: restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable growth. 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 2004 Moroccan authorities instituted measures to boost foreign direct investment and trade by signing a free trade agreement with the US and selling government shares in the state telecommunications company and in the largest state-owned bank. Favorable rainfall over the past two years has boosted agricultural output and GDP growth passed 4% in 2004. In 2005 the budget deficit is expected to rise sharply - from 1.9% of GDP in 2004 - because of substantial increases in wages and oil subsidies. Long-term challenges include preparing the economy for freer trade with the US and European Union, improving education and job prospects for Moroccos youth, and raising living standards.

Population below poverty line:

19% (1999 est.)

Labor force:

11.02 million (2004 est.)

Labor force - by occupation:

Agriculture 40%, industry 15%, services 45% (2003 est.)

Unemployment rate:

12.1% (2004 est.)

Public debt:

70.2% of GDP (2004 est.)

Agriculture - products:

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

Industries:

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

Electricity - production:

13.91 billion kWh (2002)

Electricity - consumption:

14.24 billion kWh (2002)

Oil - proved reserves:

300 million bbl (2004 est.)

Natural gas - production:

50 million cu m (2001 est.)

Natural gas - consumption:

50 million cu m (2001 est.)

Exports:

$9.754 billion f.o.b. (2004 est.)

Exports - commodities:

Clothing, fish, inorganic chemicals, transistors, crude minerals, fertilizers (including phosphates), petroleum products, fruits, vegetables

Exports - partners:

France 25.3%, Spain 18.4%, UK 8%, Italy 4.9%, Germany 4.6%, US 4.6% (2004)

Imports:

$15.63 billion f.o.b. (2004 est.)

Imports - commodities:

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

Imports - partners:

France 21.2%, Spain 14.9%, Germany 7.3%, Italy 6.9%, Saudi Arabia 4.8%, China 4.8% (2004)

Currency:

Moroccan dirham (MAD)

Currency code:

MAD

Exchange rates:

Moroccan dirhams per US dollar - 8.868 (2004), 9.574 (2003), 11.021 (2002), 11.303 (2001), 10.626 (2000)

Fiscal year:

Calendar year