Morocco Overview

The Moroccan economy has known a regular growth for several years. GDP growth rate was 5.2% in 2003, 5.5% in 2004 but is likely to plunge to 1.8% in 2005. However, this growth remains insufficient to curb poverty and high unemployment (11% in 2005). The IMF forecasts a 5.9% growth in 2006. Economy's performance strongly relies on climatic conditions, especially pluviometry, due to agriculture's important weight. External debt and public deficit remain high, as well.

The agricultural sector is predominant in Morocco: almost half of the active population is employed in this sector which provides about 18% of the GDP. Cereals, fruits and vegetables are the main crops. The country's productivity is often affected by droughts which regularly hit the country. Morocco holds a few mining resources, phosphates being its main wealth. The industrial sector provides almost a third of the GDP, especially thanks to textile and electronic assembling activities. The service sector is driven by tourism which is undergoing a fast development, despite an economic slowdown since September-11 and Casablanca attacks in May 2003.

Morocco's top import partners are France, Spain and Italy. Morocco mainly imports finished consumer goods, capital goods, hydrocarbons and food-processing products. Morocco's top exports partners are France, Spain and United-Kingdom. Morocco exports mainly articles of apparel and clothing accessories and electrical machinery.

The EU-Morocco Association agreement signed in 2000 should lead to a free-trade zone by 2012. 16 Regional Investment Centres (RDI), progressively implemented since 2002, have the task of locally helping foreign investments, which facilitates procedures for foreign investors.