Economy - overview:
Moroccan economic policies brought macroeconomic stability to the
country in the early 1990s but have not spurred growth sufficient to
reduce unemployment that nears 20% in urban areas. Poverty has
increased due to the volatile nature of GDP, Morocco's continued
dependence on foreign energy, and its inability to promote the
growth of small and medium size enterprises. However, GDP growth
rebounded to 6.7% in 2006 due to high rainfall, which resulted in a
strong second harvest. Despite structural adjustment programs
supported by the IMF, the World Bank, and the Paris Club, the dirham
is only fully convertible for current account transactions and
Morocco's financial sector is rudimentary. Moroccan authorities
understand that reducing poverty and providing jobs is key to
domestic security and development. In 2004, Moroccan authorities
instituted measures to boost foreign direct investment and trade by
signing a free trade agreement with the US, which entered into force
in January 2006, and sold government shares in the state
telecommunications company and in the largest state-owned bank.
Long-term challenges include preparing the economy for freer trade
with the US and European Union, improving education and job
prospects for Morocco's youth, and raising living standards, which
the government hopes to achieve by increasing tourist arrivals and
boosting competitiveness in textiles.
GDP (purchasing power parity):
$147 billion (2006 est.)
GDP (official exchange rate):
$56.72 billion (2006 est.)
GDP - real growth rate:
6.7% (2006 est.)
GDP - per capita (PPP):
$4,400 (2006 est.)
GDP - composition by sector: agriculture: 13.3% industry: 31.2% services: 55.5% (2006 est.)
Labor force: 11.25 million (2006 est.)
Labor force - by occupation: agriculture: 40% industry: 15% services: 45% (2003 est.)
Unemployment rate:
7.7% (2006 est.)
Population below poverty line:
19% (2005 est.)