Morocco Economy - 2006

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 actually 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. 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 and selling government shares in the state telecommunications company and in the largest state-owned bank. The Free Trade agreement went into effect in January 2006. In 2005, GDP growth slipped to 1.2% and the budget deficit rose sharply - to 7.5% of GDP - because of substantial increases in wages and oil subsidies. 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):
$140.9 billion (2005 est.)

GDP (official exchange rate):
$51.56 billion (2005 est.)

GDP - real growth rate:
1.2% (2005 est.)

GDP - per capita (PPP):
$4,300 (2005 est.)

GDP - composition by sector:
agriculture: 21.7%
industry: 35.7%
services: 42.6% (2004 est.)

Labor force:
11.19 million (2005 est.)

Labor force - by occupation:
agriculture: 40%
industry: 15%
services: 45% (2003 est.)

Unemployment rate:
10.5% (2005 est.)

Population below poverty line:
19% (2005 est.)

Household income or consumption by percentage share:
lowest 10%: 2.6%
highest 10%: 30.9% (1998-99)

Distribution of family income - Gini index:
40 (2005 est.)

Inflation rate (consumer prices):
2.1% (2005 est.)

Investment (gross fixed):
23.5% of GDP (2005 est.)

Budget:
revenues: $12.94 billion
expenditures: $16.77 billion; including capital expenditures of $2.19 billion (2005 est.)

Public debt:
72.3% of GDP (2005 est.)

Agriculture - products:
barley, wheat, citrus, wine, vegetables, olives; livestock

Industries:
phosphate rock mining and processing, food processing, leather goods, textiles, construction, tourism

Industrial production growth rate:
NA%

Electricity - production:
17.35 billion kWh (2003)

Electricity - consumption:
17.58 billion kWh (2003)

Electricity - exports:
0 kWh (2003)

Electricity - imports:
1.45 billion kWh (2003)

Oil - production:
300 bbl/day (2005 est.)

Oil - consumption:
158,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
100 million bbl (2005 est.)

Natural gas - production:
5 million cu m (2003 est.)

Natural gas - consumption:
650 million cu m (2003 est.)

Natural gas - exports:
NA cu m

Natural gas - imports:
NA cu m

Natural gas - proved reserves:
1.218 billion cu m (2005)

Current account balance:
-$607.5 million (2005 est.)

Exports:
$9.472 billion f.o.b. (2005 est.)

Exports - commodities:
clothing, fish, inorganic chemicals, transistors, crude minerals, fertilizers (including phosphates), petroleum products, fruits, vegetables

Exports - partners:
France 33.6%, Spain 17.4%, UK 7.7%, Italy 4.7%, US 4.1% (2004)

Imports:
$18.15 billion f.o.b. (2005 est.)

Imports - commodities:
crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics

Imports - partners:
France 18.2%, Spain 12.1%, Italy 6.6%, Germany 6%, Russia 5.7%, Saudi Arabia 5.4%, China 4.2%, US 4.1% (2004)

Reserves of foreign exchange and gold:
$16.2 billion (2005 est.)

Debt - external:
$15.6 billion (2005 est.)

Economic aid - recipient:
ODA, $218 million (2002)

Currency (code):
Moroccan dirham (MAD)

Exchange rates:
Moroccan dirhams per US dollar - 8.865 (2005), 8.868 (2004), 9.574 (2003), 11.021 (2002), 11.303 (2001)