Development in Moroccan Economy
Economic Environment
Development of the Moroccan Economy
The Moroccan economy is known for its macroeconomic stability. Inflation rates have always been relatively low, mainly due to the country’s restrictive currency regime. Morocco has been characterised by moderate to high growth rates. The country has benefited from its low labour cost and strategic location near the European mainland. Morocco has experienced a stronger growth than usual since the year 2000, caused by improved weather conditions, a strong export growth and various liberalizing policies. These liberalizing policies have been introduced by King Mohammed VI in 2003. He came up with a number of economic reforms resulting in a growth of the small modern manufacturing sector and the development of the tourism industry. He has put his main focus on the European Union since the Free Trade Agreement in the year 2000.
Morocco’s Gross Domestic Product (GDP) has steadily gone up since 2002. According to statistics of “Datamonitor 360” the GDP in 2002 was about 40 billion dollar, in 2010 the GDP had grown to approximately 60 billion dollar. That is a rise of 50% in only eight years time. The World Factbook from the CIA mentions that in 2010 Morocco ranked number 58 in the world when it comes to the GDP. The real GDP growth rate has not been negative since 2002. In 2010 Morocco ranked number 77 in the world of real GDP growth. The lowest growth rate was about 2,5% in 2005 and 2007 and peeked with 7,5% in 2006. This could have possibly been caused by the Free Trade Agreement with the United States of America, which was introduced in 2006. I will further explain the results of the Free Trade Agreement with the EU and the USA later on in this chapter.
The three main sectors: industry, service and agriculture, all grew steadily the past ten years. In 2009 the service sector was the biggest sector and contributed 49,4% to the GDP, the industry sector came second with 31,3% followed by the agriculture with
Development of the Moroccan Economy
The Moroccan economy is known for its macroeconomic stability. Inflation rates have always been relatively low, mainly due to the country’s restrictive currency regime. Morocco has been characterised by moderate to high growth rates. The country has benefited from its low labour cost and strategic location near the European mainland. Morocco has experienced a stronger growth than usual since the year 2000, caused by improved weather conditions, a strong export growth and various liberalizing policies. These liberalizing policies have been introduced by King Mohammed VI in 2003. He came up with a number of economic reforms resulting in a growth of the small modern manufacturing sector and the development of the tourism industry. He has put his main focus on the European Union since the Free Trade Agreement in the year 2000.
Morocco’s Gross Domestic Product (GDP) has steadily gone up since 2002. According to statistics of “Datamonitor 360” the GDP in 2002 was about 40 billion dollar, in 2010 the GDP had grown to approximately 60 billion dollar. That is a rise of 50% in only eight years time. The World Factbook from the CIA mentions that in 2010 Morocco ranked number 58 in the world when it comes to the GDP. The real GDP growth rate has not been negative since 2002. In 2010 Morocco ranked number 77 in the world of real GDP growth. The lowest growth rate was about 2,5% in 2005 and 2007 and peeked with 7,5% in 2006. This could have possibly been caused by the Free Trade Agreement with the United States of America, which was introduced in 2006. I will further explain the results of the Free Trade Agreement with the EU and the USA later on in this chapter.
The three main sectors: industry, service and agriculture, all grew steadily the past ten years. In 2009 the service sector was the biggest sector and contributed 49,4% to the GDP, the industry sector came second with 31,3% followed by the agriculture with