Morocco Economy - 2005

Economy - overview:
Morocco faces problems typical for developing countries: restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable growth. 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. 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. Favorable rainfall over the past two years has boosted agricultural output and GDP growth passed 4% in 2004. In 2005 the budget deficit is expected to rise sharply - from 1.9% of GDP in 2004 - 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.

GDP:
purchasing power parity - $134.6 billion (2004 est.)

GDP - real growth rate:
4.4% (2004 est.)

GDP - per capita:
purchasing power parity - $4,200 (2004 est.)

GDP - composition by sector:
agriculture: 21.2%
industry: 35.8%
services: 43% (2004 est.)

Labor force:
11.02 million (2004 est.)

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

Unemployment rate:
12.1% (2004 est.)

Population below poverty line:
19% (1999 est.)

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

Distribution of family income - Gini index:
39.5 (1998-99)

Inflation rate (consumer prices):
2.1% (2004 est.)

Investment (gross fixed):
22.4% of GDP (2004 est.)

Budget:
revenues: $12.86 billion
expenditures: $15.4 billion, including capital expenditures of $2.19 billion (2004 est.)

Public debt:
70.2% of GDP (2004 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:
13.91 billion kWh (2002)

Electricity - consumption:
14.24 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
1.3 billion kWh (2002)

Oil - production:
1,000 bbl/day (2004 est.)

Oil - consumption:
167,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
300 million bbl (2004 est.)

Natural gas - production:
50 million cu m (2001 est.)

Natural gas - consumption:
50 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
665.4 million cu m (2004)

Current account balance:
$765.4 million (2004 est.)

Exports:
$9.754 billion f.o.b. (2004 est.)

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

Exports - partners:
France 25.3%, Spain 18.4%, UK 8%, Italy 4.9%, Germany 4.6%, US 4.6% (2004)

Imports:
$15.63 billion f.o.b. (2004 est.)

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

Imports - partners:
France 21.2%, Spain 14.9%, Germany 7.3%, Italy 6.9%, Saudi Arabia 4.8%, China 4.8% (2004)

Reserves of foreign exchange and gold:
$15.14 billion (2004 est.)

Debt - external:
$17.07 billion (2004 est.)

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

Currency (code):
Moroccan dirham (MAD)

Exchange rates:
Moroccan dirhams per US dollar - 8.868 (2004), 9.574 (2003), 11.021 (2002), 11.303 (2001), 10.626 (2000)