Morocco Economy 2007

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):
$152.5 billion (2006 est.)

GDP (official exchange rate):
$58.13 billion (2006 est.)

GDP - real growth rate:
9.4% (2006 est.)

GDP - per capita (PPP):
$4,600 (2006 est.)

GDP - composition by sector:
agriculture: 17.3%
industry: 37%
services: 45.7% (2006 est.)

Labor force:
10.86 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.)

Household income or consumption by percentage share:
lowest 10%: 2.6%
highest 10%: 30.9% (1999)

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

Inflation rate (consumer prices):
3.4% (2006 est.)

Investment (gross fixed):
24.1% of GDP (2006 est.)

Budget:
revenues: $16.45 billion
expenditures: $18.98 billion (2006 est.)

Public debt:
67.4% of GDP (2006 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:
4% (2004 est.)

Electricity - production:
21.37 billion kWh (2005)

Electricity - consumption:
20.67 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
802 million kWh (2005)

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

Oil - consumption:
170,000 bbl/day (2004 est.)

Oil - exports:
21,890 bbl/day (2004 est.)

Oil - imports:
186,100 bbl/day (2004 est.)

Oil - proved reserves:
100 million bbl (1 January 2006)

Natural gas - production:
47.95 million cu m (2005 est.)

Natural gas - consumption:
47.95 million cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
0 cu m (2005)

Natural gas - proved reserves:
1.629 billion cu m (1 January 2006 est.)

Current account balance:
$229 million (2006 est.)

Exports:
$11.39 billion f.o.b. (2006 est.)

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

Exports - partners:
France 21.1%, Spain 20.2%, UK 4.8%, Italy 4.6%, India 4% (2006)

Imports:
$20.96 billion f.o.b. (2006 est.)

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

Imports - partners:
France 17.6%, Spain 13.5%, Saudi Arabia 6.9%, China 6.9%, Italy 6.4%, Germany 6% (2006)

Economic aid - recipient:
ODA, $651.8 million (2005)

Reserves of foreign exchange and gold:
$20.79 billion (2006 est.)

Debt - external:
$16.63 billion (2006 est.)

Stock of direct foreign investment - at home:
$23.5 billion (2006 est.)

Stock of direct foreign investment - abroad:
$567 million (2006 est.)

Market value of publicly traded shares:
$49.36 billion (2006)

Currency (code):
Moroccan dirham (MAD)

Exchange rates:
Moroccan dirhams per US dollar - 8.7722 (2006), 8.865 (2005), 8.868 (2004), 9.574 (2003), 11.021 (2002)