Editing Economy of Morocco (section)

==History==
{{main|Economic history of Morocco}}
{{History of Morocco}}Over the years, Morocco implemented a series of development plans, enacted economic reforms, and encountered various challenges that have influenced its economic trajectory. From the 1960s to the present day, the country has sought to achieve sustained economic growth, reduce [[unemployment]] rates, and improve the living standards of its population.

===1960–1989===
Morocco instituted a series of development plans to modernize the economy and increase production during the 1960s. Net investment under the five-year plan for 1960–64 was about $1.3 billion. The plan called for a growth rate of 6.2%, but by 1964 the growth rate had only reached 3%. The main emphasis of the plan was on the development and modernization of the agricultural sector. The five-year development plan for 1968–72 called for increased agriculture and irrigation. The development of the tourist industry also figured prominently in the plan. The objective was to attain an annual 5% growth rate in GDP; the real growth rate actually exceeded 6%.

Investment during the 1970s included industry and tourism development. The five-year plan for 1973–77 envisaged a real economic growth of 7.5% annually. Industries singled out for development included chemicals (especially phosphoric acid), phosphate production, paper products, and metal fabrication. In 1975, King [[Hassan II]] announced a 50% increase in investment targets to allow for the effects of inflation. The 1978–80 plan was one of stabilization and retrenchment, designed to improve Morocco's balance-of-payments position.

The ambitious five-year plan for 1981–85, estimated to cost more than $18 billion, aimed at achieving a growth rate of 6.5% annually. The plan's principal priority was to create some 900,000 new jobs and to train managers and workers in modern agricultural and industrial techniques. 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. The plan called for significant expansion of irrigated land, for increased public works projects such as hospitals and schools, and for economic decentralization and regional development through the construction of 25 new industrial parks outside the crowded [[Casablanca]]-[[Kénitra]] coastal area. Large industrial projects included phosphoric acid plants, sugar refineries, mines to exploit cobalt, coal, silver, lead, and copper deposits, and oil-shale development.<ref name="nationsencyclopedia.com">{{cite web|url=http://www.nationsencyclopedia.com/Africa/Morocco-ECONOMIC-DEVELOPMENT.html|title=Economic development – Morocco – product, growth, area, annual, economic growth, infrastructure, policy, sector|access-date=11 June 2015|archive-date=12 June 2015|archive-url=https://web.archive.org/web/20150612225026/http://www.nationsencyclopedia.com/Africa/Morocco-ECONOMIC-DEVELOPMENT.html|url-status=live}}</ref>

===1990–2000s===
[[File:MoroccoGDPgrowth1990-2005.jpg|thumb|350px|Moroccan GDP growth (1990–2005).]]

Moroccan economic policies brought macroeconomic stability to the country in the early 1990s but did not spur growth sufficient to reduce unemployment despite Moroccan Government's ongoing efforts to diversify the economy.<ref name="theodora.com">{{cite web|url=http://www.theodora.com/wfbcurrent/morocco/morocco_economy.html|title=Morocco Economy 2015, CIA World Factbook|access-date=11 June 2015|archive-date=7 May 2015|archive-url=https://web.archive.org/web/20150507231659/http://www.theodora.com/wfbcurrent/morocco/morocco_economy.html|url-status=live}}</ref> [[Drought]] conditions depressed activity in the key agricultural sector, and contributed to an economic slowdown in 1999. Favourable rainfalls have led Morocco to a growth of 6% for 2000. Formidable long-term challenges included: servicing the [[external debt]]; preparing the economy for [[Morocco and the European Union|freer trade]] with the [[European Union|EU]]; and improving education and attracting [[Investment in Morocco|foreign investment]] to improve living standards and job prospects for Morocco's youthful population.

[[Macroeconomics|Macroeconomic]] stability coupled with relatively slow [[economic growth]] characterized the Moroccan economy over the period 2000–2005. The government introduced a number of important economic reforms in that period. The economy, however, remained overly dependent on the [[agriculture|agricultural]] sector. Morocco's primary economic challenge was to accelerate growth in order to reduce high levels of [[Economy of Morocco#Labour|unemployment]]. The government continued liberalizing the telecommunications sector in 2002, as well as the rules for [[Oil exploration|oil]] and gas exploration. This process started with the sale of a second GSM license in 1999. The government in 2003 was using revenue from [[privatization]]s to finance increased spending. Although Morocco's economy grew in the early 2000s, it was not enough to significantly reduce [[poverty]].<ref name="nationsencyclopedia.com"/>

Through a foreign [[exchange rate]] anchor and well-managed monetary policy, Morocco held [[inflation]] rates to [[developed country|industrial country]] levels over the past decade. Inflation in 2000 and 2001 were below 2%. Despite criticism among exporters that the [[Moroccan dirham|dirham]] has become badly overvalued, the current account deficit remains modest. [[Foreign exchange reserves]] were strong, with more than $7 billion in reserves at the end of 2001. The combination of strong foreign exchange reserves and active external debt management gave Morocco the capacity to service its debt. Current external debt stands at about $16.6 billion. [https://www.cia.gov/the-world-factbook/countries/morocco/ Africa:: Morocco — The World Factbook - Central Intelligence Agency] {{Webarchive|url=https://web.archive.org/web/20221202191738/https://www.cia.gov/the-world-factbook/countries/morocco/ |date=2 December 2022 }}

[[Economic growth]], however, has been erratic and relatively slow, partially as a result of an over-reliance on the agricultural sector. Agriculture production is extremely susceptible to [[rainfall]] levels and ranges from 13% to 20% of [[gross domestic product|GDP]]. Given that 36% of Morocco's [[Demographics of Morocco|population]] depends directly on agriculture production, [[drought]]s have a severe knock-on effect to the economy. Two successive years of drought led to a 1% incline in real GDP in 1999 and stagnation in 2000. Better rains during the 2000 to 2001 growing season led to a 6.5% growth rate in 2001. Growth in 2006 went above 9%, this was achieved by a booming [[real estate]] market.

The government introduced a series of structural reforms in recent years. The most promising reforms have been in the liberalization of the telecommunications sector. In 2001, the process continued with the privatization of 35% of the state operator [[Maroc Telecom]]. Morocco announced plans to sell two fixed licenses in 2002. Morocco also has liberalized rules for [[oil and gas exploration]] and has granted concessions for many [[public services]] in major cities. The tender process in Morocco is becoming increasingly transparent. Many believe, however, that the process of economic reform must be accelerated in order to reduce urban unemployment below the current rates above 20%.

=== Recent developments ===
{| style="width: 22em; font-size: 85%; text-align: left;" class="infobox"
|-
!align="center" bgcolor="lightblue" colspan="2"|Macroeconomic indicators
|-
| colspan=2 | [[File:Coat of arms of Morocco.svg|center|100px]]
|-
! style="background:#f0f0f0;" align="left" valign="top"|[[GDP]] ([[Purchasing power parity|PPP]])
| style="background:#f0f0f0;" valign="top"| [[United States dollar|US $]]314.5 billion (2018 est.)
|-
!align="left" valign="top"|GDP growth
|valign="top"| 5.7% (2009 est.)
|-
! style="background:#f0f0f0;" align="left" valign="top"|GDP per capita [[purchasing power parity|PPP]]
| style="background:#f0f0f0;" valign="top"| US$8,930 (2018 est.)
|-
! style="background:#f0f0f0;" align="left" valign="top"|[[Gross national income|GNI]](PPP) per capita
| style="background:#f0f0f0;" valign="top"| US$3,990 (2009 est.)
|-
! style="background:#f0f0f0;" align="left" valign="top"|[[Inflation]] (CPI)
| style="background:#f0f0f0;" valign="top"| 1.8% (2018 est.)
|-
!align="left" valign="top"|[[Gini index]]
|valign="top"| 40.0 (2005)
|-
! style="background:#f0f0f0;" align="left" valign="top"|[[Unemployment]]
| style="background:#f0f0f0;" valign="top"| 9.1% (2008)
|-
!align="left" valign="top"|[[Human Development Index|HDI]]
|valign="top"|{{profit}} 0.646 (2007)
|-
!style="background:#f0f0f0;" align="left" valign="top"|Labor force
|style="background:#f0f0f0;" valign="top"| 11.5 million (2008 est.)
|-
!align="left" valign="top"|Pop. in poverty
|valign="top"| 15% (2008)
|-
| align="center" bgcolor="lightblue" colspan="2"|
|}
[[Image:Morocco 50 dirhams.jpg|thumb|left|50 dirhams and Ksour in the background]]
Morocco's sound economic management in recent years has yielded strong growth and investment grade status and it is weathering the negative impacts of the global crisis impressively well. Morocco is now addressing persistent social problems by reducing absolute poverty rates, investing in human capital through quality education, expanding access to drinking water, and linking rural areas to markets through investment in roads.

Morocco faces challenges on human development outcomes despite progress over the past decade, in particular. Overall illiteracy rates and gender disparity in access to secondary education remain high and the country continues to suffer poor outcomes on infant and maternal mortality.<ref>{{Cite web |last=News |first=Mahamadou Simpara-Morocco World |title=Morocco Ranks 4th in Africa, 10th in the Arab World on 2024 Social Progress Index |url=https://www.moroccoworldnews.com/2024/01/360234/morocco-ranks-4th-in-africa-10th-in-the-arab-world-on-2024-social-progress-index |access-date=2024-07-27 |website=www.moroccoworldnews.com |language=en}}</ref> It also needs to diversify its economy, become more competitive, and integrate further into the global economy if it is to reach higher growth levels.<ref>{{Cite web |title=Morocco: Morocco targets economic diversification to secure its long-term growth |url=https://africainvestmentconference.com/news/morocco-morocco-targets-economic-diversification-to-secure-its-long-term-growth/ |access-date=2024-07-27 |website=Africa Investment Conference |language=en}}</ref>

The government has recognized this challenge and has put in place an ambitious process of legal, policy, and institutional modernization that has far-reaching political, economic, and social dimensions. It has designed and is now implementing a comprehensive set of new sector strategies that respond to the overall national vision and that target development challenges with clear, measurable goals and indicators.{{Citation needed|date=September 2019}}

Tough government reforms and steady yearly growth in the region of 4–5% from 2000 to 2007, including 4.9% year-on-year growth in 2003–2007 the Moroccan economy is much more robust than just a few years ago. [[Economy of Morocco#Economic growth|Economic growth]] is far more diversified, with new service and industrial poles, like [[Casablanca]] and [[Tangier]], developing. The [[Agriculture in Morocco|agriculture sector]] is being rehabilitated, which in combination with good rainfalls led to a growth of over 20% in 2009.

==== 2008 ====
In a statement, released in July 2008, the [[IMF]] called Morocco "a pillar of development in the [[Maghreb|region]]" and congratulated [[King Mohammed VI]] and the [[Bank Al-Maghrib|Central Bank]] on Morocco's continued strong economic progress and effective management of [[monetary policy]].<ref>{{Cite web|url=http://www.marketwatch.com/news/story/international-monetary-fund-praises-moroccos/story.aspx?guid=%7B76C2DD9F-59CC-4750-A85E-2206E03BE00A%7D|title=MarketWatch.com<!-- Bot generated title -->}}</ref>

Morocco's economy is expected to grow by 6.5% in 2008, according to the Moroccan finance minister. While the forecast is slightly lower than the earlier 6.8% projected growth it still remains quite an achievement considering the circumstances. [[GDP]] growth in 2007 was only 2.2% due to a poor harvest caused by prolonged periods of [[drought]]; Morocco experienced nonagricultural GDP growth of 6.6 percent in 2007. [[Inflation]] is expected to reach 2.9% in 2008 due to the rising costs of energy.<ref>{{cite web | url=http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/newsbriefs/general/2008/06/05/newsbrief-05 | title=Moroccan economy expected to grow by 6.2% in 2008 | date=5 June 2008 | access-date=6 January 2017| archive-url=https://web.archive.org/web/20140706100612/http://magharebia.com/en_GB/articles/awi/newsbriefs/general/2008/06/05/newsbrief-05 | archive-date=6 July 2014 | website=Magharebia.com}}</ref>
In an increasingly challenging [[World economy|global economic]] climate, the IMF expects continued nonagricultural expansion of the Moroccan economy.

The global financial crisis affected the Moroccan economy in only a limited way. Morocco may be affected, by the slowdown of international economy, stirred by the global financial crisis, and whose maximum impact on national economy could decrease the GDP growth rate by at least one point in 2009, according to the [[Bank Al-Maghrib]].<ref>{{cite web |url=http://www.map.ma/eng/sections/economy/morocco_could_be_aff/view |title=Archived copy |access-date=28 October 2008 |url-status=dead |archive-url=https://web.archive.org/web/20120322150516/http://www.map.ma/eng/sections/economy/morocco_could_be_aff/view |archive-date=22 March 2012}}</ref>

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.
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]].

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),<ref name="map.ma">http://www.map.ma/eng/sections/economy/morocco_banks_on_bud/view {{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> despite a difficult international context marked by a severe economic crisis. 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).<ref name="map.ma"/>

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. 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. The approach also include a better sustaining of small-business development and prospection of external markets. The objective is to become an emerging industrial country of the likes of Vietnam by 2015.

US Ambassador to the EU noted that:
:"Morocco stands out as a model of economic reform for the region and for other developing countries. The kind of economic progress that Morocco has made, and which the rest of the Maghreb has the potential to accomplish, is the best antidote to the new threat of terrorism in the region." {{Citation needed|date=May 2009}}

{| class="wikitable"
|-
! Moroccan GDP growth compared to region (IMF<ref>{{Cite book| chapter = Country and Regional Perspectives| publisher = International Monetary Fund| isbn = 9781452799759| last = Dept| first = International Monetary Fund Research| title = World Economic Outlook, October 2008: Financial Stress, Downturns, and Recoveries| date = 10 October 2008| url = http://www.imf.org/external/pubs/ft/weo/2008/02/pdf/c2.pdf| access-date = 19 April 2009| archive-date = 26 March 2009| archive-url = https://web.archive.org/web/20090326211912/http://www.imf.org/external/pubs/ft/weo/2008/02/pdf/c2.pdf| url-status = live}}</ref>)|
! 2006
! 2007
! 2008
! 2009
|-
|'''[[Maghreb]] GDP growth'''
|'''4.3'''
|'''4.3'''
|'''5.5'''
|'''4.9'''
|-
|[[Economy of Morocco#Economic growth|Moroccan GDP growth]]
|7.8
|2.7
|6.5
|5.5
|-
|[[Economy of Algeria|Algerian GDP growth]]
|2.0
|4.6
|4.9
|4.5
|-
|[[Economy of Tunisia|Tunisian GDP growth]]
| 5.5
| 6.3
| 5.5
| 5.0
|}

==== 2009 ====
The economy has remained insulated from the worst effects of the world crisis. Due in part to the rebounding of the agricultural sector, which had suffered from a 2007 drought, the economy expanded 5.6% in 2008, with 5.7% growth forecasted for 2009. Morocco's economy is the 61st largest in the world, according to the IMF, though its per-capita GDP is low compared to similarly ranked nations. [[King Mohammed VI]] has recently launched two national economic strategies: Plan Maroc Vert and Plan Emergence. The first seeks to create 1.5m jobs in the [[Agriculture in Morocco|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.  Additionally, phosphates production, which accounted for more than a third of 2008 exports, is being restructured for greater value.

Morocco's economy is expected to achieve a 6.6% growth in the first quarter of 2009 up from 4.8% in the past quarter thanks to prospects for an [[Agriculture in Morocco|agricultural campaign]] above the average of the past five years.<ref name="ReferenceA">{{cite web |url=http://www.map.ma/eng/sections/economy/morocco_s_economy_to/view |title=Home: Morocco's economy to grow by 4% in Q1 2011 |access-date=20 January 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110314012335/http://www.map.ma/eng/sections/economy/morocco_s_economy_to/view |archive-date=14 March 2011}}</ref><ref name="magharebia.com">{{cite web|url=http://magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/newsbriefs/general/2009/01/21/newsbrief-04|title=Morocco foresees 6.6% economic growth in 2009 first quarter – Magharebia|access-date=11 June 2015|archive-url=https://web.archive.org/web/20150427111359/http://magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/newsbriefs/general/2009/01/21/newsbrief-04|archive-date=27 April 2015|url-status=dead}}</ref>

By the end of December 2008, rainfalls exceeded that of an ordinary year by 106%. This surplus has benefited to all agricultural regions and increased the water stored in dams destined for agriculture to 40.7%. 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.<ref name="ReferenceA"/><ref name="magharebia.com"/>

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. This trend could continue in Q1 of 2009 with a growth rate not exceeding 2% due to a lackluster economic growth outlook and the slowdown of international trade.

==== 2019 ====
In June 2019, Morocco signed two agreements to obtain a loan worth $237 million from the [[Arab Fund for Economic and Social Development]]. The loan was taken to fund two investment projects.<ref>{{cite web|url=https://www.middleeastmonitor.com/20190620-arab-fund-for-economic-and-social-development-lends-morocco-237-million-dollars/|title=Arab Fund for Economic and Social Development lends Morocco $237m|date=20 June 2019|access-date=20 June 2019|publisher=Middle East Monitor|archive-date=20 June 2019|archive-url=https://web.archive.org/web/20190620145437/https://www.middleeastmonitor.com/20190620-arab-fund-for-economic-and-social-development-lends-morocco-237-million-dollars/|url-status=live}}</ref>

==== 2020 ====
On the economic front, the shock of COVID-19 has pushed the Moroccan economy into its first recession since 1995. 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 pandemic's disruption to global value chains and the collapse of receipts from tourism. The shock to supply and demand, triggered by the pandemic, has been compounded by the fall in agricultural production due to a severe drought. Although activity picked up in the third and fourth quarters of 2020, the government's preliminary estimates indicate that Morocco's real GDP contracted by 7% in 2020, leading to an increase in unemployment from 9.2% to 11.9%.<ref name=":3">{{Cite web|title=Overview|url=https://www.worldbank.org/en/country/morocco/overview|access-date=2021-10-28|website=World Bank|language=en|archive-date=1 November 2019|archive-url=https://web.archive.org/web/20191101055128/https://www.worldbank.org/en/country/morocco/overview|url-status=live}}</ref>