The economic context of Morocco

Main Sectors of Industry

Given the richness of Morocco's soil, the agricultural sector is pivotal for the country’s economy, employing 30% of the workforce and contributing 11.1% of GDP (World Bank, latest data available). Barley, wheat, citrus fruits, grapes, vegetables, argan, olives, livestock and wine are the country's main crops. In recent years, the government has focused on the sector through its "Generation Green" plan and the Agricultural Development Fund. The country’s cereal production is highly variable, with local dams providing irrigation for only 15% of the agricultural land and rainfed agricultural production accounting for 85% of the aggregate output (FAO). Morocco is a net importer of agricultural and related products. During the 2023/2024 season, persistent drought reduced national cereal production by 42%, bringing it down to 3.3 million tons, according to FAO data.

Industry contributes 24.6% of the GDP and employs 24% of the workforce. The main sectors are textiles, leather goods, food processing, oil refining, and electronic assembly. However, new sectors have been booming: chemistry, automotive parts, computers, electronics and the aerospace industry. The automotive industry, in particular, has been growing in the last decade, with double-digit annual growth in terms of job creation and exports (becoming the country’s main exporting sector and Africa’s main automotive hub). Overall, the manufacturing sector is estimated to account for 14% of GDP. Morocco’s industrial sector is the largest beneficiary of foreign direct investment and the emergence of new industries should allow it to reduce its dependence on the agricultural sector. Moreover, the country has around 75% of the world's estimated reserves of phosphates, and the mineral sector accounts for almost 30% of exports (Oxford Business Group). Mining accounts for 10% of GDP, of which 90% derives from phosphates. As per official figures, the manufacturing index (excluding oil refining) rose by 9.2% in Q3 2034, driven by strong sectoral growth. The chemical industry led with 18.2%, fueled by exports and innovation, followed by automotive at 17%, reinforcing Morocco’s export strength. Food and apparel grew by 9% and 11.8%, while metal products saw a 13% rise, highlighting industrial resilience.

The services sector accounts for more than half of GDP (54.3%) and gives employment to 46% of the workforce. It is spearheaded by real estate and tourism, which has been very dynamic in recent years: it accounted for around 11% of GDP and hit a record of nearly 13 million arrivals in 2019; after a contraction due to the pandemic, it reached new heights in 2024, when the country welcomed 17 million tourists (+20% y-o-y – data Ministry of Tourism). The banking sector is dominated by locally owned banks, which account for more than 80% of industry assets (U.S. Department of Commerce). The retail sector is led by small retailers, which boast 250,000 shops compared with just 1,000 big retail stores.   

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:

63,3/100

World Rank:

81

Regional Rank:

9

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation