Editing Economy of Morocco (section)

===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%.