Morocco flag Morocco: Economic and Political Overview

The economic context of Morocco

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

In recent years, the Moroccan economy has been characterised by macroeconomic stability and low levels of inflation, relying mostly on exports, a boom in private investment, and tourism. However, the COVID-19 shock has pushed the Moroccan economy into its first recession since 1995. The country’s GDP rebounded in 2021 when it grew an estimated 7.9%, but was hindered by global shocks and a severe drought in 2022, with GDP growing by only 0.8% (IMF). The recovery of tourism, strong remittances, and resilient exports have partially offset the shocks derived from Russia’s invasion of Ukraine, which fueled inflation and reduced households’ purchasing power. The IMF expects Morocco’s growth rate to hover around 3% this year and the next, assuming a gradual improvement of external conditions and an average agricultural season.

The fiscal impact of the health and social protection reform and postponement of the liquefied petroleum gas and flour subsidy reform slowed the consolidation of the budget deficit, which was estimated at 5.1% of GDP in 2022. The government published its three-year budget plans as part of the 2023 Budget, which envisages a continued reduction of the deficit to closer to pre-pandemic levels (projected at 5.2% of GDP this year and 4.5% in 2024 – IMF). The debt-to-GDP ratio has been increasing in recent years, reaching 70.3% in 2022 (from 68.9% one year earlier), and is expected to remain stable over the forecast horizon. The average annual inflation rate reached 6.2% in 2022 as a result of the 11% increase in the food index and the 3.9% increase in the non-food index (data HCP). Higher energy prices contributed to inflationary pressures (the country’s energy bill has more than doubled in the first eleven months of the year), and the Central Bank raised its benchmark interest rate to 2.5% in December in an effort to curb inflation.

Albeit its high levels, the unemployment rate has been declining in recent years and averaged 11.1% in 2022. For 2023 and 2024, the IMF expects it to further decrease to 10.7% and 10.2%, respectively. According to the Moroccan Higher Planning Commission, unemployment particularly affects the youth (15-24 years of age – at 31.8% as of August 2022 – latest data available) and recent graduates. The rate of poverty remains one of the highest in the Mediterranean region, with almost one-fifth of the population living near the poverty line. Finally, the GDP per capita (PPP) was estimated at USD 9,808 in 2022 by the IMF.

Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 130.91147.34157.40166.49175.33
GDP (Constant Prices, Annual % Change)
GDP per Capita (USD) 3,5703,9804,2124,4154,608
General Government Balance (in % of GDP) -5.1-5.0-4.4-3.8-3.5
General Government Gross Debt (in % of GDP) 71.569.769.168.768.4
Inflation Rate (%) n/a6.
Unemployment Rate (% of the Labour Force) 11.812.011.711.611.6
Current Account (billions USD) -4.62-4.52-5.05-4.79-4.86
Current Account (in % of GDP) -3.5-3.1-3.2-2.9-2.8

Source: IMF – World Economic Outlook Database, October 2021

Main Sectors of Industry

Given the richness of Morocco's soil, the economy is dominated by the agricultural sector, which employs one-third of the workforce and contributes 12% 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 "Green Morocco 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). According to preliminary data by the Ministry for Agriculture, the agricultural sector’s value-added decreased by 14% year-on-year during the 2021/22 crop year. The production of the main cereals (common wheat, durum wheat and barley) for the 2021/2022 crop year was estimated at 32 million quintals, down 69% from the previous year's record production, also due to the drought experienced by the country: at the end of April 2022, a rainfall level of 188mm was recorded, which is 42% lower than the average for the last 30 years (327 mm) and 35% lower than the previous year (289 mm).

Industry contributes 26.1% of the GDP and employs 23% 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 15% of GDP. The emergence of new industries should allow the country to reduce its dependence on the agricultural sector. Morocco’s industrial sector is the largest beneficiary of foreign direct investment. 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.

The services sector accounts for slightly above half of GDP (51.6%) and gives employment to 44% of the workforce. It is spearheaded by real estate and tourism, which has been very dynamic in recent years (accounting for around 11% of GDP and hitting a record of nearly 13 million arrivals in 2019). Although tertiary activities recorded a downward trend following the outbreak of the COVID-19 pandemic, with a particularly weak tourism performance, improvements were achieved in 2022 when tourist arrivals reached 84% of the pre-pandemic level and the value tourist receipts in foreign currency stood at MAD 81.7 billion at the end of November 2022 (data Ministry of Tourism). Finally, the Moroccan banking sector is dominated by locally owned banks, which account for more than 80% of industry assets (U.S. Department of Commerce).

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 34.6 22.8 42.6
Value Added (in % of GDP) 10.7 27.2 52.3
Value Added (Annual % Change) -15.3 -0.4 5.3

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.


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Indicator of Economic Freedom


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.}}

World Rank:
Regional Rank:

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


Business environment ranking


The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

World Rank:

Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024


Country Risk

See the country risk analysis provided by Coface.

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Sources of General Economic Information

Ministry of Economy and Finances
Ministry of Industry and Commerce
Ministry of Administration Reform
Department of Energy and Mines
Department of Tourism
Statistical Office
High Commissioner for Planning
Central Bank
Bank Al-Maghrib
Stock Exchange
Casablanca stock exchange
Economic Portals
Directorate General of the Treasury

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Latest Update: November 2023