Morocco is a major touristic destination. Its wine industry is developed, and the production of commercial crops (cotton, sugarcane, sugar beets, and sunflowers) is expanding. Government efforts are underway to encourage Moroccans living abroad to increase their investments at home, and to allay concerns about bureaucracy and corruption. The European Union is Morocco's top client as regards textile and clothing, with France importing 46% of hosiery, 28.5% of basic textile and 27.6% of ready-to-wear clothing from Morocco, managing director of the Moroccan Export Development Center underlined.  Morocco has become a major player in African economic affairs, and is the 5th largest African economy by GDP (PPP). In 2007 the economic environment remained conducive to further growth of banking activity in Morocco following a very good year for the sector in 2006. International economic experts recognize that Morocco's exemplary economic performance is beneficial not only to Moroccans, but also for the nearly 90 million people who live the Maghreb. The rapid emergence of a middle class around 30% of the population combined with a young and increasingly urban population and a craving for international brands, is rapidly changing the ways Moroccans spend their money. Livestock are raised and forests yield cork, cabinet wood, and building materials. Current external debt stands at about $16.6 billion. Several trade unions exist in the country; the largest of these, with nearly 700,000 members, is L'Union Marocaine du Travail, which is affiliated with the International Confederation of Free Trade Unions. The global financial crisis affected the Moroccan economy in only a limited way. It is also a major participant in the car and truck assembly industry and in tire manufacturing. The call centre industry partially as a result of offshore initiatives, such as Casanearshore and Rabat Technoplis will continue to expand. Reduced incomes due to drought caused GDP to fall by 7.6% in 1995, by 2.3% in 1997, and by 1.5% in 1999. In 2001, the process continued with the privatization of 35% of the state operator Maroc Telecom. Privatization has stimulated activity on the Casablanca Stock Exchange (Bourse de Casablanca) notably through trade in shares of large former state-owned operation. The combination of strong foreign exchange reserves and active external debt management gave Morocco the capacity to service its debt. According to the Moroccan Advertisers Group, Dh3.9 billion ($507 million) was spent in 2007, a near-fourfold increase on the Dh1.1 billion ($143 million) spent in 2000. The approach also include a better sustaining of small-business development and prospection of external markets. According to the International Energy Agency (IEA) report 2014, Morocco is highly dependent on imported energy with over 91% of energy supplied coming from abroad. During the years between drought, good rains brought bumper crops to market. Since then the emphasis has shifted to privatizing state operations and attracting new private investment, including foreign sources. Since the mid-1980s tourism and associated services have been an increasingly significant sector of the Moroccan economy and by the late 1990s had become Morocco's largest source of foreign currency. Morocco is expected to close the year 2008 with a budgetary surplus ranging between MAD 3 billion and MAD3.5 billion ($348 million to $407 million), despite a difficult international context marked by a severe economic crisis. The international system has seven submarine cables, three satellite earth stations, two Intelsat (over the Atlantic Ocean) and one Arabsat. Africa:: Morocco The World Factbook - Central Intelligence Agency. The State High Planning Commission that Morocco's official unemployment rate dropped to 9.1% in Q2 2008, down from 9.6% in Q1. Morocco is a participant in Medarabtel and a fiber-optic cable links from Agadir to Algeria and Tunisia. The cannabis is typically processed into hashish. Today, it is home to the largest Renault car plant in North Africa. In November 2009 Morocco announced a solar energy project worth $9 billion which officials said will account for 38 percent of the North African country's installed power generation by 2020. Until the early 1980s, government involvement was dominant and the major focus was on import substitution. Morocco also has the largest port in Africa and the Mediterranean called Tanger-Med, which is ranked the 18th in the world with a handling capacity of over 9 million containers. The Moroccan Office of Hydrocarbons and Mining (ONHYM) has become optimistic about finding additional reservesparticularly offshorefollowing discoveries in neighboring Mauritania. Foreign trade minister, Abdellatif Maazouz cited that these measures include financial incentives and tax exemptions provided for in the investment code and the regional investment centres established to accompany projects.
Roughly one-third of the population is employed in agriculture, another one-third make their living in mining, manufacturing, and construction, and the remainder are occupied in the trade, finance, and service sectors. 20% of these investments came from Islamic countries. The franchising segment will continue to grow, and while strong local brands are emerging, international brand names will continue to account for the biggest percentage increase in the sector's turnover. Mean wages were $2.88 per man-hour in 2009. It is one of the few Arab countries that has the potential to achieve self-sufficiency in food production. China's share rose to 46% on average in 2010, and several clothing categories, China is more than 50%. A 2006 government report suggested that the country needed a net increase of 400,000 jobs annually for the next two decades in order to provide enough employment for its people, given the underlying demographic dynamic. An improved rural service employs microwave radio relay. IEA (2014) "Morocco 2014 Energy Policies Beyond IEA Countries", Learn how and when to remove this template message, Africa:: Morocco The World Factbook - Central Intelligence Agency, Arab Fund for Economic and Social Development, United Nations Conference on Trade and Development, "World Economic Outlook Database, April 2019", "World Economic Outlook Database, October 2019", "Poverty headcount ratio at national poverty lines (% of population) Morocco", "Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population) Morocco", "Inequality-adjusted Human Development Index (IHDI)", "Employment to population ratio, 15+, total (%) (national estimate) Morocco", "Morocco (MAR) Exports, Imports, and Trade Partners", "How Fitch, Moody's and S&P rate each country's credit rating", "International Reserves and Foreign Currency Liquidity MOROCCO", "Morocco major economic player in Africa, researcher", "Economy Morocco import, problem, growth, crops, annual, sector", "Le Maroc, pays le plus ingalitaire d'Afrique du Nord", "Economics, Business, and the Environment GDP: GDP per capita, current US dollars", "Report for Selected Countries and Subjects", "Economic development Morocco product, growth, area, annual, economic growth, infrastructure, policy, sector", "Morocco Economy 2015, CIA World Factbook", "Moroccan economy expected to grow by 6.2% in 2008", http://www.map.ma/eng/sections/economy/morocco_banks_on_bud/view, "Morocco foresees 6.6% economic growth in 2009 first quarter Magharebia", "Arab Fund for Economic and Social Development lends Morocco $237m", http://www.unis.unvienna.org/unis/pressrels/2003/unisnar826.html, "Morocco to legalise cannabis for medical and industrial use", "Cannabis: l'Istiqlal revient la charge", "France: l'humoriste Dieudonn, le succs qui inquite? In addition, the number of employees should increase from 40,000 to 125,000. The automotive sector is already Morocco's leading export sector and has made the Kingdom the leading car manufacturer in Africa.  Funding would be from a mix of private and state capital. When king Hassan II passed on, his son, Mohammed VI, made it his duty to develop the Northern Region, and especially its biggest city, Tangier. In the European market, the share of Chinese products was 37.7% in 2007.
The ambitious five-year plan for 198185, estimated to cost more than $18 billion, aimed at achieving a growth rate of 6.5% annually. Manufacturing accounts for about one-sixth of GDP and is steadily growing in importance in the economy. The plan also includes other large-scale development projects such as upgrading regional airports to attract budget airlines, and building new train and road links. Food processing for export (canning fish, fresh vegetables, and fruit) as well as for domestic needs (flour milling and sugar refining) is also important, and the manufacture of textiles and clothes using domestically produced cotton and wool is a major source of foreign exchange. , The fishing industry in Morocco is a leading foreign exchange earner, accounting for 56% of agricultural and 16% of total exports. The service is offered by the subsidiary Menara. At the end of November 2008, the state's budget registered a surplus of MAD 3.2 billion ($372 million), while at the end of November 2009, the budgetary surplus is projected at MAD 6.9 billion ($803 million).. Morocco has a good system composed of open-wire lines, cables, and microwave radio relay links. The government wishes to increase 3 exports from $1.27 billion in 2001 to $3.29 billion in 2010. In terms of sectors, tourism has the biggest share of investment with $1.55 billion, that is 33% of the total FDIs, followed by the real estate sector and the industrial sector, with respectively $930 million and $374 million. The country has to import 96% of its energy requirements and the national oil bill for the first quarter of 2008 was $1.1 billion69% higher than for the same period in 2007. Morocco may have additional hydrocarbon reserves, as many of the country's sedimentary basins have not yet been explored. Morocco suffers both from structural unemployment and a large external debt.  That is an increase of 74% compared with the year 2005. . In 2008 8 million tourists have visited the kingdom. Production at the PSA plant projects to be 200000 vehicles and boasting a total production capacity of 700000 cars. Morocco sends a significant amount of its exports to the European Union. Heavy industry is largely limited to petroleum refining, chemical fertilizers, automobile and tractor assembly, foundry work, asphalt, and cement. The economy has remained insulated from the worst effects of the world crisis.  , Since the early 2010s a growing debate is taking place in Morocco about decriminalization of Cannabis. stated that the economy becomes more diversified and disconnected from rain falls. Having weathered the global financial meltdown, the Casablanca Stock Exchange is stepping up to its central role of financing the Moroccan economy. A number of Arab countries, mainly from the Persian Gulf region are involved in large-scale projects in Morocco, including the giant Tanger Med port on the Mediterranean. According to this report, Morocco had 17 390 research staff in 20022003. A bond that gives cold sweats to Moroccan exporters who have invested heavily in the sector, The President of CEDITH Jean-Franois Limantour said in an article that Turkey is the second supplier to Europe with a market share of 12.6%. Agadir, Essaouira, El Jadida, and Larache are among the important fishing harbors. The Chinese company BYD is a pioneer when it comes to electric cars and Morocco has signed a memorandum of understanding with the Chinese automaker to set up an electric car factory near Tangier, the first of its kind in the country. an extension of the line to Marrakesh is already being planned. Expectations for 2008 were promising noting that 72 projects were approved for a global amount of $9.28 billion. Textiles form a major industry in Morocco. With the penetration rates of 69.4% from mobile phones and 8.95% for fixed lines, the Moroccan telecoms industry is set to continue to grow. Morocco's unemployment rate, long a cause for concern, has been dropping steadily in 2008, on the back of job growth in services and construction. , The Moroccan industrial sector looks set to continue the strong growth it has enjoyed in recent years. In addition, reforms to the higher educational system and business law are also planified in the new program-contract signed in 2009 between the government, the banking sector and some zone-development companies. Economic output contracted by 15.1% in the second quarter of 2020, primarily as a result of the lockdown but also of a sharp reduction in exports caused by the pandemics disruption to global value chains and the collapse of receipts from tourism. The following table shows the main economic indicators in 19802017.. exports in 2018, 42% went to Spain and 29% went to France. There have also been efforts to add more computers to schools and universities. The five-year plan for 197377 envisaged a real economic growth of 7.5% annually. These were due to open 40,023 direct and stable job opportunities. This strategy provides for creating 160,000 beds, thus bringing the national capacity to 230,000 beds. This activity represents 0.57% of Morocco's GDP. The credit rating agency attributed its classification in part to the "relative resilience of Morocco's economy to the global economic downturn.". It also employs about 39,000 people with an estimated MAD 571 million in salaries (2005). , On the economic front, the shock of COVID-19 has pushed the Moroccan economy into its first recession since 1995. In the short term these subsidies are helping to ease the burden but they cannot keep rising indefinitely, and sooner or later the load will have to be shared out. Morocco, which is close to Europe, has a mix of culture and the exotic that makes it popular with Europeans buying holiday homes.. To boost investment in these activities, Morocco intends to encourage Moroccan capital and joint ventures. Added value in the sector increased by 5.6% in 2007. The minister added that he expects to see a reversal of the imbalance by 2010. However, there are still numerous missing elements: sunroofs, leather seats, instrument panels, foundry, screws, tires, radios and screens. The economy, however, remained overly dependent on the agricultural sector. Although Morocco's economy grew in the early 2000s, it was not enough to significantly reduce poverty.  According to experts, multinational companies are attracted by Morocco's geographical and cultural proximity to Europe, in addition to its time zone. This rises to around one third in urban areasrural communities often employ the young in agriculture, including on the family farm, as soon as they leave school, contributing to relatively high youth employment rates (lower levels of official unemployment registration are also a factor).. Morocco's primary economic challenge was to accelerate growth in order to reduce high levels of unemployment. Two successive years of drought led to a 1% incline in real GDP in 1999 and stagnation in 2000.
Increasing public investment in ports, housing development projects, and roads as well as the boom in the tourism sector have been a big shot in the arm for the construction sector. Other major goals were to increase production in agriculture and fisheries to make the country self-sufficient in food, and to develop energy, industry, and tourism to enable Morocco to lessen its dependence on foreign loans. Fez's plan involves a substantial restructuring of the old city and an upgrading of hotel capacity. The government in 2003 was using revenue from privatizations to finance increased spending. On May 26, 2021, the Moroccan Parliament voted to legalize the use of cannabis for medical, as well as cosmetic and industrial purposes. Joblessness has long been a cause for serious concern in North Africa. Following the example of Renault, they could take advantage of the skilled work pool that has been created and a network of more than 200 automotive suppliers. The production of the plants reached 402000 vehicles in 2018. The most recent figures available on the number of research staff in Morocco are those provided by the Ministry of National Education, Higher Education, Professional Training and Scientific Research in its 20022003 annual report. This surplus has benefited to all agricultural regions and increased the water stored in dams destined for agriculture to 40.7%.
Morocco exports citrus fruits and early vegetables to the European market. , In recent years,[when?] In 1998 the government created Maroc Telecom (Ittilt al-Maghrib), which provides telephone, cellular, and Internet service for the country. The government hopes that adding more local content to the internet will increase usage. Fishing and phosphate mining are the main activities in Moroccan-administered Western Sahara. However, its competitiveness in basic manufactured goods, such as textiles, is hampered by low labour productivity and high wages. The most promising reforms have been in the liberalization of the telecommunications sector. Historically, the Casablanca-Rabat axis has been more prosperous and has received more government attention than the predominantly mountainous northern provinces and the Western Sahara region. With approximately 85,000 square kilometres (33,000sqmi) of arable land (one-seventh of which can be irrigated) and its generally temperate Mediterranean climate, Morocco's agricultural potential is matched by few other Arab or African countries. Marrakech continues to be the market leader, but the case of Fez, showing a 20% increase of visitors in 2004, gives hope that better organisation can bring results in diversifying the sector as a whole.  Recalling that Morocco's textile and clothing exports totaled some $3.7 billion in 2007, Saad Benabdallah ascribed this performance to the many assets that Morocco enjoys, namely, geographical proximity, flexibility, sourcing skills and the multiple opportunities offered by Free Trade Agreements with the European Union, United States and Turkey. But the biggest investment was the creation of the new port Tanger-Med. But when Mohammed VI became king in 1999, he developed a plan for the economic revival of Tangier. The overall fiscal deficit shrank by more than 4 percentage points of GDP during the last four years, bringing the budget close to balance in 2007. The plan provides for creating six coastal resorts for holiday-home owners and tourists: five on the Atlantic coast and one on the Mediterranean. Morocco produces a number of minerals and metals, most importantly, phosphates, silver and lead.  Especially, cereal yields still depend on considerable variation in annual precipitation. The financial system, though robust, has to take on excessive quantities of low risk-low return government debt at the expense of riskier, but more productive private sector lending. Morocco has two major "traditional" car manufacturers: Renault and PSA. The industrial sector accounted for about 21.1% of employment in 2007 and the sector is a key component of the government's effort to curb unemployment. These agreements contributed undoubtedly in a positive way towards the emergence of export activities in the country. Under the development plan, the sector should employ 125,000 people by 2012 and contribute 10% of GDP.
Additionally, phosphates production, which accounted for more than a third of 2008 exports, is being restructured for greater value. Morocco announced plans to sell two fixed licenses in 2002. Net investment under the five-year plan for 196064 was about $1.3 billion. Since 2012, the city has made it clear that it wants to invested in automobile industry by creating Tangier Automotive city. Morocco also produces a significant amount of illicit hashish, much of which is shipped to Western Europe. While the forecast is slightly lower than the earlier 6.8% projected growth it still remains quite an achievement considering the circumstances. Due to a decrease of activity among Morocco's main commercial partners, foreign demand of goods destined towards Morocco would moderately slow down in 2009 compared to the 9% rise in 2008. Under a ten-year plan for the protection of natural resources, 40,000 to 50,000 ha of forests are replanted annually with indigenous palm trees. The Moroccan Ministry of Equipment, Transport, Logistics, and Water aims to build an additional 3380 kilometers of expressway and 2100 kilometers of highway by 2030, at an expected cost of $9.6 billion. In these conditions and taking into consideration a cereal campaign nearing 70 million quintals, the agricultural value added could increase by 22.2% in the first quarter of 2009, thus contributing 2.9% to the national economic growth.. While the telecoms sector remains the big earner, with Dh33 billion ($4.3 billion), the IT and off shore industries should generate Dh21 billion ($2.7 billion) each by 2012. The economic system of the country is characterized by a large opening towards the outside world. In the medium term, the goal is to attract nearly 50 other industrialists. Over the next few years, it seeks to double its number of listed companies and more than quadruple its number of investors.. In 198797, science and engineering students accounted for 41% of college and university enrollments. The input of renewable energy is a matter of particular importance.. Morocco is endowed with numerous exploitable resources. On the Atlantic coast, where there are extensive plains, olives, citrus fruits, and wine grapes are grown, largely with water supplied by artesian wells. Since the early 1980s, the Moroccan government has pursued an economic program toward accelerating economic growth with the support of the International Monetary Fund, the World Bank, and the Paris Club of creditors. Two particularly important components of Morocco's industrial makeup are processing raw materials for export and manufacturing consumer goods for the domestic market. The first seeks to create 1.5m jobs in the agriculture sector, and add around 7.65 billion to GDP through 10.8 billion of investments by 2020, while the latter will establish new industrial zones and boost training to increase efficiency. In addition to the rise in sales of photovoltaic panels, the business of wind turbines is also surging despite soaring prices on international markets because of the growing demand. The number of Moroccan internet subscribers in 2007 amounted to 526,080, representing an increase of 31.6% compared to the previous year and a 100% increase compared to 2005. Meanwhile, government infrastructure projects, as well as heavy private investment in real estate and tourism helped boost the construction sector, which created 80,000 new jobs in the second quarter of 2008. Behind life and auto insurance, accident, work-related accident, fire and transport insurance were the largest contributors. The loan was taken to fund two investment projects. Authorities are promoting better water rationalisation in agriculture, which uses 80% of water resources, by replacing existing irrigation systems with micro- irrigation and drip networks. Morocco consistently ranks among the world's largest producers and exporters of cannabis, and its cultivation and sale provide the economic base for much of northern Morocco. The government continued liberalizing the telecommunications sector in 2002, as well as the rules for oil and gas exploration. Morocco's trade imbalance rose from 86 billion to 118 billion dirhams between 2006 and 2007 a 26.6% increase bringing the total amount to 17% of GDP. The World Economic Forum placed Morocco as the 1st most competitive economy in North Africa, in its African Competitiveness Report 20142015.. In June 2019, Morocco signed two agreements to obtain a loan worth $237 million from the Arab Fund for Economic and Social Development. Please help update this article to reflect recent events or newly available information. The internet is available. The national network is nearly 100% digital using fiber-optic links.  The majority (58%) were employed in the university sector. Morocco's low social indicators and large infrastructure needs could justify an increase in social spending and public investment. In 1996 the state-owned telecommunications industry was opened up to privatization by a new law that allowed private investment in the retail sector, while the state retained control of fixed assets. Overall the contribution of industrial activity to GDP fluctuates between about 25% and 35% every year, depending on the performance of the agriculture sector. More important is that cereal yields determine not only the aggregate value added in the agricultural sector but also economic growth in general.  Despite the fact that these disparities tend to decrease in urban areas, these data show the importance of the efforts needed to overcome this situation. The ceremony was attended by U.S. Secretary of State Hillary Clinton and the Moroccan king. The sector also attracts high levels of FDI and authorities have announced initiatives to improve the investment climate, with particular attention to off-shoring activities, automotive, aeronautics, electronics, food processing activities, products from the sea and textiles. Formidable long-term challenges included: 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 prospects for Morocco's youthful population. The diversification of the Economy includes a multi-disciplinary approach to the development of non-agricultural sector, including the creation of special sectorial zones in industry, tourism and services outsourcing. , The telecoms sector increased in value from Dh25.6 billion ($3.3 billion) in 2006 to Dh33.3 billion ($4.2 billion) in 2007. According to a 2006 estimate by the Oil and Gas Journal (OGJ), Morocco has proven oil reserves of 1,070,000 barrels (170,000m3) and natural gas reserves of 60billion cubic feet (1.7109m3). In a report issued in July 2008, the IMF noted that Morocco's financial sector is sound and resilient to shocks, and that the remarkable fiscal consolidation efforts of recent years have allowed the Moroccan economy to absorb the impact of difficult international economic conditions and increasing global prices for essential commodities such as petroleum and energy.