Economy

The Moroccan Economy

• Morocco is a developing county and faces problems such as restraining government spending, reducing constraints on foreign trade, and sustaining economic growth.

• The dirham is only fully convertible for current account transactions

• Moroccan agriculture was hindered due to droughts, attributing to a stagnant economy in 2002. However, Morocco received foreign exchange inflows due to the sale of cell phone licenses, and, "partial privatization of the state-owned telecommunications company and the state tobacco company."

• Favorable rainfall in 2003 led to a growth of 6%.

• Long-term challenges include: preparing the economy for freer trade with the European Union and US, improving education, and attracting foreign investment to boost living standards and job prospects for Moroccans.

• Unemployment rate is 7.7%

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

• Agriculture (13% of GDP, 2005): Products--barley, citrus fruits, vegetables, olives, livestock, and fishing.
Barley Citrus Fruits Olives




•Trade: Exports--$14.037 billion (27% GDP, 2005). Major markets--EU 71.5%, India 4.1%, U.S. 2.6%, and Brazil 2.4%. Imports-- $17.68 billion (34% GDP, 2005). Major suppliers--EU 52.1%, Saudi Arabia 4.8%, Russia 6.7%, China 5.2%, U.S. 3.4%.