Economic overview Morocco, in 36 editions.

After registering a robust 10% growth in 1988, the The economy slowed recovered moderately in 1989 1990 because of higher prices for food and oil imports, lower worker remittances, and the resolution of a trade dispute with India over phosphoric acid prices that cost Rabat $500 million. To meet sales, a rebound in textile sales to the EC, and lower prices for food imports. In addition, a dramatic increase in worker remittances, increased Arab donor aid, and generous debt rescheduling agreements helped ease foreign payments shortfall, Rabat has been drawing pressures. On the down foreign exchange reserves. side, higher oil import costs fueled inflation. Servicing the $22 $21 billion foreign debt, high unemployment, and Morocco's vulnerability to external forces remain severe problems for the 1990s.

The economy had recovered moderately in 1990 because of: the resolution of a
trade dispute with India over phosphoric acid sales, a rebound in textile
sales to the EC, lower prices for food imports, a sharp increase in worker
remittances, increased Arab donor aid, and generous debt rescheduling
agreements. Economic performance in 1991 was mixed. A record harvest helped
real GDP advance by 4.2%, although nonagricultural output grew by less than
1%. 4.2%. Inflation accelerated slightly as easier financial
policies triggered
rapid credit and monetary growth. Despite recovery of
domestic demand,
import volume growth slowed while export volume was
adversely affected by
phosphate marketing difficulties. In January 1992,
Morocco reached a new
12-month standby arrangement for $129 million with the
IMF. In February
1992, the Paris Club rescheduled $1.4 billion of Morocco's
commercial debt.
This is thought to be Morocco's last rescheduling. By 1993
the Moroccan
authorities hope to be in a position to meet all debt service obligations
obligations without additional rescheduling. Servicing this large debt, high
unemployment, and Morocco's vulnerability to external economic forces remain
severe long-term problems. In 1992 Morocco embarked on a program to
privatize 112 state-owned companies. A severe winter drought in 1991/92 cut
back agricultural output in 1992.

Morocco faces the typical problems of developing countries -
countries--restraining restraining government spending, reducing constraints on
private
activity and foreign trade, and keeping inflation within
bounds. Since
the early 1980s the government has pursued an economic
program toward
these objectives with the support of the IMF, the World
Bank, and the
Paris Club of creditors. The economy has substantial
assets to draw
on: the world's largest phosphate reserves, diverse
agricultural and
fishing resources, a sizable tourist industry, a
growing manufacturing
sector, and large remittances from Moroccans
working abroad. However, a A severe
drought in 1992-93 has depressed
economic activity and held down experts. exports.
Real GDP contracted by 2.9%
4.4% in 1992, 1992 and growth for 1993 is estimated at only 2%. 1.1% in 1993. Despite these
setbacks, initiatives to relax capital controls, strengthen the
banking sector, and privatize state enterprises went forward in 1993.
1993-94. Favorable rainfall in 1994 boosted agricultural production by
40%. Servicing the large debt, high unemployment, and vulnerability to
external economic forces remain long-term problems for Morocco.

Morocco faces the typical problems of
developing countries -
restraining government spending, reducing
constraints on private
activity and foreign trade, and keeping
inflation within bounds. Since
the early 1980s the government has
pursued an economic program toward
these objectives with the support
of the IMF, the World Bank, and the
Paris Club of creditors. The
economy has substantial assets to draw
on: the world's largest
phosphate reserves, diverse agricultural and
fishing resources, a
sizable tourist industry, a growing manufacturing
sector, and
remittances from Moroccans working abroad. A severe
drought in
1992-93 depressed economic activity and held down exports.
Real GDP
contracted by 4.4% in 1992 and 1.1% in 1993. Despite these
setbacks,
initiatives to relax capital controls, strengthen the
banking
sector, and privatize state enterprises went forward in
1993-94.
Favorable rainfall in 1994 boosted agricultural production by
40%.
In 1995, Morocco suffered from a drought said to be the worst in 30
years. Servicing the large debt, high unemployment, and
vulnerability to
external economic forces remain long-term problems
for Morocco.

Morocco faces the typical problems of
developing
countries - restraining government spending, reducing
constraints on
private activity and foreign trade, and keeping
inflation within
manageable bounds. Since the early 1980s the government has
pursued an
economic program toward these objectives with the support
of the IMF,
the World Bank, and the Paris Club of creditors. The dirham is now
economy has substantial assets to draw on: fully convertible for current account transactions; reforms of the world's largest
phosphate reserves, diverse agricultural and fishing resources, a
sizable tourist industry, a growing manufacturing sector, financial sector have been implemented; and 43 state enterprises have
remittances from Moroccans working abroad. A severe drought been privatized. Drought conditions in three of the last four years
1992-93 have depressed economic activity and held down exports. Real GDP
contracted by 4.4% in 1992 and 1.1% in 1993. Despite these setbacks,
initiatives to relax capital controls, strengthen the banking
key agricultural sector, holding down
exports and privatize state enterprises went forward contributing to a 7.5% contraction in 1993-94. real GDP in 1995.
Favorable rainfall in 1994 boosted agricultural production by 40%.
In 1995, Morocco suffered from 1996 nurtured a drought said record wheat crop and
contributed to be the worst in 30
years. 9% overall growth. Servicing the large external
debt, high unemployment, and preparing the economy for freer trade with the European Union,
vulnerability to external economic forces and finding jobs for Morocco's youthful population remain long-term problems
for Morocco. problems.

Morocco faces the typical problems typical of developing
countries - restraining countries-restraining government spending, reducing constraints on
private activity and foreign trade, and keeping inflation within
manageable bounds. Since the early 1980s the government has pursued an
economic program toward these objectives with the support of the IMF,
the World Bank, and the Paris Club of creditors. The dirham is now
fully convertible for current account transactions; reforms of the
financial sector have been implemented; and 43 state enterprises have are
been slowly being privatized. Drought conditions in three of the last four years
have 1997 depressed activity
in the key agricultural sector, holding down
exports and contributing
to a 7.5% 2.2% contraction in real GDP in 1995.
GDP. Favorable rainfall rainfalls in 1996 nurtured a record wheat crop and the fall of
contributed 1997 have led to the 9% overall growth. forecasts of robust, 8%-9% real GDP growth in 1998.
Servicing the large external
debt, preparing the economy for freer trade
with the European Union,
improving education and living standards, and
finding jobs for Morocco's youthful population remain long-term
problems. challenges.

Morocco faces the problems typical of developing
countries-restraining developing countries--restraining government spending, reducing
constraints on
private activity and foreign trade, and keeping
inflation within
manageable bounds. Since the early 1980s the
government has pursued an
economic program toward these objectives
with the support of the IMF,
the World Bank, and the Paris Club of
creditors. The dirham is now
fully convertible for current account
transactions; reforms of the
financial sector have been implemented;
and state enterprises are
slowly being privatized. Drought
conditions in 1997 depressed activity
in the key agricultural
sector, holding down exports and contributing
to a 2.2% contraction
in real GDP. Favorable rainfalls in the fall of
1997 have led to forecasts of robust, 8%-9%
6.8% real GDP growth in 1998. Growth is forecast to be about 4.0% in
Servicing 1999. Formidable long-term challenges include: servicing the
external debt, debt; preparing the economy for freer trade
with the European Union, EU;
and improving education and attracting foreign investment to improve
living standards, standards and
finding jobs job propects for Morocco's youthful population remain long-term
challenges. population.

Morocco faces the problems typical of
developing countries--restraining countries - restraining government spending, reducing
constraints on private activity and foreign trade, and keeping
inflation within manageable bounds. achieving sustainable economic growth. Since the early 1980s the
government has pursued an economic program toward these objectives
with the support of the IMF, the World Bank, and the Paris Club of
creditors. The dirham is now fully convertible for current account
transactions; reforms of the financial sector have been implemented;
and state enterprises are slowly being privatized. Drought
conditions in 1997 depressed activity in the key agricultural
sector, holding down exports and contributing contributed to a 2.2% contraction
an economic slowdown in real GDP. 1999. Favorable rainfalls in the fall of 1997 have led Morocco to
6.8% real GDP predict a growth in 1998. Growth is forecast to be about 4.0% in
1999. of 6% for 2000. Formidable long-term challenges include: servicing the
external debt; preparing the economy for freer trade with the EU;
and improving education and attracting foreign investment to improve
living standards and job propects prospects for Morocco's youthful population.

Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Since the early 1980s the government has pursued an economic program toward these objectives with the support of Following structural adjustment programs supported by the IMF, the World Bank, and the Paris Club of creditors. The Club, the dirham is now fully convertible for current account transactions; transactions, and reforms of the financial sector have been implemented; and state enterprises are being privatized. implemented. Drought conditions depressed activity in the key agricultural sector, sector and contributed to an economic slowdown a stagnant economy in 1999. 1999 and 2000. During that time, however, Morocco reported large foreign exchange inflows from the sale of a mobile telephone license and partial privatization of the state-owned telecommunications company. Favorable rainfalls have led Morocco to predict a growth of 6% 1% for 2000. 2001. Formidable long-term challenges include: servicing the external debt; preparing the economy for freer trade with the EU; and improving education and attracting foreign investment to improve boost living standards and job prospects for Morocco's youthful population.

Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Following structural adjustment programs supported by the IMF, World Bank, and the Paris Club, the dirham is now fully convertible for current account transactions, and reforms of the financial sector have been implemented. Drought conditions Droughts depressed activity in the key agricultural sector and contributed to a stagnant economy in 1999 and 2000. During that time, however, Morocco reported large foreign exchange inflows from the sale of a mobile telephone license and partial privatization of the state-owned telecommunications company. Favorable rainfalls have rainfall in 2001 led Morocco to predict a growth of 1% for 2001. 5%. Formidable long-term challenges include: servicing the external debt; preparing the economy for freer trade with the EU; and improving education and attracting foreign investment to boost living standards and job prospects for Morocco's youthful population. youth.

Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Following structural adjustment programs supported by the IMF, World Bank, and the Paris Club, the dirham is now fully convertible for current account transactions, and reforms of the financial sector have been implemented. Droughts depressed activity in the key agricultural sector and contributed to a stagnant economy in 1999 and 2000. During that time, however, Morocco reported large foreign exchange inflows from the sale of a mobile telephone license and partial privatization of the state-owned telecommunications company. Favorable rainfall in 2001 led to a growth of 5%. 6.5%. Good harvest conditions continued to support GDP growth in 2002. Formidable long-term challenges include: servicing the external debt; modernizing the industrial sector; preparing the economy for freer trade with the EU; EU and US; and improving education and attracting foreign investment to boost living standards and job prospects for Morocco's youth.

Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Following Despite structural adjustment programs supported by the IMF, the World Bank, and the Paris Club, the dirham is now only fully convertible for current account transactions, and reforms transactions. Reforms of the financial sector have been implemented. are being contemplated. Droughts depressed activity in the key agricultural sector and contributed to a stagnant economy in 1999 and 2000. During that time, however, 2002. Morocco reported large foreign exchange inflows from the sale of a mobile telephone license license, and partial privatization of the state-owned telecommunications company and the state tobacco company. Favorable rainfall in 2001 2003 led to a growth of 6.5%. Good harvest conditions continued to support GDP growth in 2002. 6%. Formidable long-term challenges include: servicing the external debt; modernizing the industrial sector; preparing the economy for freer trade with the EU and US; and US, improving education education, and attracting foreign investment to boost living standards and job prospects for Morocco's youth.

Morocco faces the problems typical of for developing countries - countries: restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic 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. Reforms of the financial sector are being contemplated. Droughts depressed activity in the key agricultural sector and contributed In 2004 Moroccan authorities instituted measures to a stagnant economy in 2002. Morocco reported large boost foreign exchange inflows from the sale of direct investment and trade by signing a mobile telephone license, free trade agreement with the US and partial privatization of selling government shares in the state-owned state telecommunications company and in the state tobacco company. largest state-owned bank. Favorable rainfall over the past two years has boosted agricultural output and GDP growth passed 4% in 2003 led 2004. In 2005 the budget deficit is expected to a growth rise sharply - from 1.9% of 6%. Formidable long-term GDP in 2004 - because of substantial increases in wages and oil subsidies. Long-term challenges include: include preparing the economy for freer trade with the EU US and US, European Union, improving education, and attracting foreign investment to boost living standards education and job prospects for Morocco's youth. youth, and raising living standards.

Morocco faces problems typical for developing countries: restraining government spending, reducing constraints Moroccan economic policies brought macroeconomic stability to the country in the early 1990s but have not spurred growth sufficient to reduce unemployment that nears 20% in urban areas. Poverty has actually increased due to the volatile nature of GDP, Morocco's continued dependence on private activity and foreign trade, energy, and achieving sustainable growth. its inability to promote the growth of small and medium size enterprises. 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. transactions and Morocco's financial sector is rudimentary. Moroccan authorities understand that reducing poverty and providing jobs is key to domestic security and development. In 2004 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% The Free Trade agreement went into effect in 2004. January 2006. In 2005 2005, GDP growth slipped to 1.2% and the budget deficit is expected to rise rose sharply - from 1.9% to 7.5% 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 Morocco's youth, and raising living standards. standards, which the government hopes to achieve by increasing tourist arrivals and boosting competitiveness in textiles.

Moroccan economic policies brought macroeconomic stability to the country in the early 1990s but have not spurred growth sufficient to reduce unemployment that nears 20% in urban areas. Poverty has actually increased due to the volatile nature of GDP, Morocco's continued dependence on foreign energy, and its inability to promote the growth of small and medium size enterprises. However, GDP growth rebounded to 6.7% in 2006 due to high rainfall, which resulted in a strong second harvest. 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 and Morocco's financial sector is rudimentary. Moroccan authorities understand that reducing poverty and providing jobs is key to domestic security and development. In 2004, Moroccan authorities instituted measures to boost foreign direct investment and trade by signing a free trade agreement with the US US, which entered into force in January 2006, and selling sold government shares in the state telecommunications company and in the largest state-owned bank. The Free Trade agreement went into effect in January 2006. In 2005, GDP growth slipped to 1.2% and the budget deficit rose sharply - to 7.5% of GDP - 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 Morocco's youth, and raising living standards, which the government hopes to achieve by increasing tourist arrivals and boosting competitiveness in textiles.

Moroccan economic policies brought macroeconomic stability to the country in the early 1990s but have not spurred growth sufficient to reduce unemployment that nears - nearing 20% in urban areas. Poverty has increased due areas - despite the Moroccan Government's ongoing efforts to diversify the volatile nature of GDP, economy. Morocco's continued GDP growth rate slowed to 2.1% in 2007 as a result of a draught that severely reduced agricultural output and necessitated wheat imports at rising world prices. Continued dependence on foreign energy, energy and its Morocco's inability to promote the growth of develop small and medium size enterprises. However, GDP growth rebounded enterprises also contributed to 6.7% in 2006 due the slowdown. Moroccan authorities understand that reducing poverty and providing jobs are key to high rainfall, which resulted in domestic security and development. In 2005, Morocco launched the National Initiative for Human Development (INDH), a strong second harvest. $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 and Morocco's financial sector is rudimentary. Moroccan authorities understand that reducing poverty and providing jobs is key to domestic security and development. transactions. In 2004, Moroccan authorities instituted measures to boost foreign direct investment and trade by signing a free trade agreement 2000, Morocco entered an Association Agreement with the US, which entered into force EU and, in January 2006, and sold government shares in the state telecommunications company and in entered a Free Trade Agreement (FTA) with the largest state-owned bank. US. Long-term challenges include preparing the economy for freer trade with the US and European Union, improving education and job prospects for Morocco's youth, and raising living standards, 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.

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 rate slowed rose to 2.1% 5.9% in 2007 as a result of 2008, with the economy recovering from a draught drought in 2007 that severely reduced agricultural output and necessitated wheat imports at rising world prices. Continued dependence on foreign energy and Morocco's inability to develop small and medium size enterprises also contributed to the slowdown. 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.

Morocco's market economy benefits from the country's relatively low labor costs and proximity to Europe, which aid key areas of the economy such as agriculture, light manufacturing, tourism, and remittances. Morocco is also the world's largest exporter of phosphate, which has long provided a source of export earnings and economic stability. Economic policies pursued since 2003 by King MOHAMMED VI have brought macroeconomic stability to the country with generally low inflation, improved financial performance, and steady progress in developing the service and industrial sectors. In 2006, Morocco entered a Free Trade Agreement (FTA) with the US, and in 2008 entered into an advanced status in its 2000 Association Agreement with the EU. However, poverty, illiteracy, and unemployment rates remain high. In response to these challenges, King MOHAMMED in 2005 launched a National Initiative for Human Development, a $2 billion program aimed at alleviating poverty and underdevelopment by expanding electricity to rural areas and replacing urban slums with public and subsidized housing, among other policies. Morocco's trade and budget deficits widened in 2010, and reducing govenment government spending and adapting to sluggish economic growth in Europe will be challenges in 2011. Morocco's long-term challenges include improving education and job prospects for young Moroccans, closing the disparity in wealth between the rich and the poor, confronting corruption, and expanding and diversifying exports beyond phosphates and low-value-added products.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In the 1980s Morocco was a heavily indebted countries country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although a poor harvest and economic difficulties in Europe contributed to an economic slowdown in 2012. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable 40% of electricity output by 2020. Key sectors of the economy include agriculture, tourism, phosphates, textiles, apparel, and subcomponents. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the United States in 2006 and an Advanced Status agreement with the European Union in 2008. Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. In 2011 and 2012, high prices on fuel - which is subsidized and almost entirely imported - strained the government's government''s budget and widened the country's country''s current account deficit. Key economic challenges for Morocco include fighting corruption and reforming the the education system, the judiciary, and the government's government''s costly subsidy program.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In the 1980s Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although a poor harvest and economic difficulties in Europe contributed to an economic slowdown in 2012. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable 40% of electricity output by 2020. Key sectors of the economy include agriculture, tourism, phosphates, textiles, apparel, and subcomponents. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the United States in 2006 and an Advanced Status agreement with the European Union in 2008. Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. In 2011 and 2012, high prices on fuel - which is subsidized and almost entirely imported - strained the government''s government's budget and widened the country''s country's current account deficit. In the fall of 2013, Morocco capped some of its fuel subsidies in an effort to gradually reduce the country’s large budgetary deficit. Key economic challenges for Morocco include fighting corruption and reforming the education system, the judiciary, and the government''s government's costly subsidy program.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In the 1980s Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although a poor harvest harvests and economic difficulties in Europe contributed to an economic slowdown in 2012. slowdown. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 40% of electricity output by 2020. Key sectors of the economy include agriculture, tourism, aerospace, phosphates, textiles, apparel, and subcomponents. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the United States in 2006 and an Advanced Status agreement with the European Union in 2008. Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. In 2011 and 2012, high prices on fuel - which is subsidized and almost entirely imported - strained the government's budget and widened the country's current account deficit. In the fall of 2013, 2014, Morocco capped some of its fuel ended subsidies in an effort to gradually reduce the country’s large budgetary on diesel, gasoline, and fuel oil which have improved its budget deficit. Subsidies on sugar, butane gas, and flour remain. Morocco’s current account deficit has also benefit from the fall in oil prices. Key economic challenges for Morocco include fighting corruption and reforming the education system, system and the judiciary, and while increasing the government's costly subsidy program. competitiveness of the private sector.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to build work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.
In the 1980s 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 40% of electricity output by 2020. Key sectors of the economy include agriculture, tourism, aerospace, phosphates, textiles, apparel, and subcomponents. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the United States US in 2006 and an Advanced Status agreement with the European Union EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighted on the country’s budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.
Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. In 2011 and 2012, high prices on fuel - which is subsidized and almost entirely imported - strained the government's budget and widened the country's current account deficit. In 2014, Morocco ended subsidies on diesel, gasoline, and fuel oil which have improved its budget deficit. Subsidies on sugar, butane gas, and flour remain. Morocco’s current account deficit has also benefit from the fall in oil prices. Key economic challenges for Morocco include reforming the education system and the judiciary, while increasing the competitiveness of the private sector. judiciary.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.
In the 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the US in 2006 and an Advanced Status agreement with the EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighted weighed on the country’s budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.
Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. Key economic challenges for Morocco include reforming the education system and the judiciary.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.
In the 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the US in 2006 and an Advanced Status agreement with the EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighed on the country’s budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.
Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. Key economic challenges for Morocco include reforming the education system and the judiciary.

lower middle-income North African economy; ongoing recovery from recent drought; drought and earthquake; rebounding via tourism, manufacturing, and aeronautics industries; major US free raw materials processing; significant trade agreement; developing energy exporter and investment with EU; reform programs include fiscal rebalancing, state enterprise governance and private sector investments