Economy of Morocco

By | April 29, 2022

According to businesscarriers, Morocco is an agrarian country with a number of fairly developed industries. One of the most developed countries in Africa. GDP — $105 billion; per capita $3,500 (2000, current prices). According to the UN classification to the beginning. 21st century – 119th place among 175 countries of the world on the basis of “social development”. According to the plan of social and economic development for 2000-04, the annual increase in GDP is 5.0-5.5%.

In 1999, the number of unemployed exceeded 2 million people; in 2000, unemployment covered 19% of the economically active population, the total number of which exceeded 10 million people, incl. among citizens – 22% (the highest figure in the history of independence). A significant part of the unemployed were young specialists, most of whom could not find work in the conditions of the preservation of the system of clan and family ties, in which positions were given not to graduates, but to incompetent people. More and more young people emigrate in search of work (annually up to 40 thousand people move to France, Belgium, Italy, Spain, Canada, the USA, where Moroccan communities have already formed).

The share of industry in the creation of GDP is 33%, agriculture – 15%, services – 52% (2000). The share of the economically active population (%): employed in agriculture, forestry and fishing – 40, in transport and communications – 30, in the service sector – 19.5, in industry – 15.4, in construction – 7.25, in trade – 4, in the energy sector – 0.6.

The leading industry is mining. Its share in total exports is 35% in value and 80% in volume. There are 1.2 million people in mining industrial centers. The industry employs 47 thousand workers and employees. In terms of the extraction of phosphorites (in 1997 – 95% of the total extraction of minerals), the country is in 3rd place in the world. For the export of phosphates – on the 1st (in 1997 – 11 million tons).

The manufacturing industry is represented by the chemical (phosphate rock and oil products processing), textile, food (including fish and seafood processing) industries, and the production of building materials.

Mechanical engineering is represented by factories for the assembly of automobiles and the production of relatively simple mining, agricultural and transport equipment; metalworking enterprises and enterprises for the production of electrical and electronic equipment.

The most important sector of the economy is agriculture. Approx. 55% of the population living in rural areas. The leading place in agricultural production belongs to agriculture. Main crops: wheat, barley, corn, sugar beets, sugar cane, potatoes, citrus fruits, bananas, olives, legumes, tomatoes.

The share of animal husbandry accounts for more than 1/3 of the gross agricultural product. Cattle are bred; sheep, goats, donkeys, mules, horses, camels.

Agriculture and animal husbandry largely depend on natural and climatic conditions, which are quite often characterized by severe and sometimes prolonged droughts, which determine the level of annual agricultural and livestock production. In order to eliminate the crisis state of agriculture in the 1990s. national programs for drought control and irrigation have been developed. The task was to ensure that even in dry years the grain harvest was approx. 6 million tons. State allocations were allocated for the implementation of programs in the amount of approx. $200 million.

An important branch of agriculture is sea fishing. The total length of the fishing zone – St. 3.5 thousand km, economic zone – 370 km with an area of 1.1 million km2. The industry employs 400 thousand people. The annual catch averages 800 thousand tons of fish and seafood; potential opportunities are estimated at 1.6 million tons of fish annually. 70% of the catch – sardine, anchovy, mackerel, horse mackerel, 20% of the catch – deep-sea species – whiting, pajot, molluscs and crustaceans. Most of the catch is exported. Proceeds from the export of fish and seafood (in 1998 – St. 710 million US dollars) account for more than 1/2 of the export of all agricultural products and approx. 15% of all exports. Domestic consumption of fish is less than 180 thousand tons.

The total length of the railways – St. 1900 km. Of these, electrified St. 1 thousand km. The volume of traffic St. 2 million passengers and 4.7 million tkm (2001).

The total length of highways is approx. 60 thousand km. More than half of them are asphalted. Freight transport in con. 1990s – OK. 20 million tons

21 seaports. St. 40% of cargo transportation falls on the port of Casablanca, 15-17% – on the ports of Jorph-Lasfar and Safi, more than 10% – on the port of Mohammedia.

30 main airports and 54 airfields, 11 of which are of international importance, capable of receiving any type of aircraft.

The Royal Moroccan Airline (RAM) operates regular flights to 31 countries and 72 cities around the world. The airlines also operate 11 private airlines.

A nationwide television network and radio broadcasts of 9 regional stations in Arabic, Berber and French are provided by television and most radio stations controlled by the state. There is a commercial radio network. In 1997, there were (in million units): radio receivers – 6.64, televisions – 3.1; in 2001 – 6 million telephone numbers, incl. OK. 5.0 million – mobile; 400 thousand personal computers, 400 thousand Internet users. In 1997, a paging network was introduced that served 50 thousand users in large cities.

Domestic trade is administered by the Federation of Chambers of Commerce and Industry of Morocco (founded in 1962, unites 26 chambers of commerce and industry) and the chambers of commerce and industry of Casablanca and Rabat-Sale, as well as a number of industrial and trade associations and industry associations.

An important branch of the national economy is foreign tourism. Income from him in con. 1990s amounted to 1.850 billion US dollars, in 2000 – St. $2 billion. The total number of tourists to St. 2 million people, including: from France (31.7%), Germany (12.0%), Spain (11.2%), Italy (5.5%), Great Britain (5.2% ), USA (4.7%). The number of tourists from Russia is growing.

Modern socio-economic policy is determined by the country’s development plan for 2002-04. The main directions are the modernization of infrastructure, assistance to the private sector, and the creation of new jobs. For these purposes, it is planned to allocate 50.6 billion US dollars, 2/3 of which – in the form of public investment, 1/3 – private.

The Central Bank of Morocco issues the national currency, manages foreign exchange reserves, controls the activities of 14 commercial banks, and makes recommendations to the government on its financial policy. A number of banks sell their shares on the stock exchange, as well as on the securities markets in Europe, the USA and Asia. In 1999, the Central Bank authorized all Moroccan banks to convert annually 10% of their assets into euros.

State budget (2001, billion US dollars): revenues – 9.6; expenses – 8.6. External public debt 18 billion US dollars (1999). The total amount of external debt is 48% of GDP. Annual payments on account of repayment – 1/3 of the income from the export of goods and services. Despite the continued burden of external debt, since 1993 Morocco has not resorted to deferrals of its repayment and has fully fulfilled its financial obligations to creditors. The state budget was supplemented by remittances from Moroccans working abroad and income from the development of foreign tourism.

Earnings of 1/3 Moroccans (over 9 million people) did not exceed 300 US dollars annually, and 19% of Moroccans (5.3 million people) had an income of less than 1 US dollar per day. Social benefits were extended to only 1/5 of the country’s inhabitants. Spending on the social sphere – health care, education, basic infrastructure – is 12% of GDP. Health care is not available to 93% of the population. 70% of the rural population lived without drinking water, 85% without electricity. There has been an absolute and relative growth in the share of the population below the poverty line.

Foreign trade (billion US dollars, 2000): export – 7.6; import – 12.2. The main export commodities are phosphates and fertilizers, food and beverages, minerals; imports – semi-finished products, industrial goods and equipment, food and drinks, consumer goods, fuel. The main trading partners for exports are France (35%), Spain (9%), Great Britain (8%), Germany (7%), USA (5%); imports – France (32%), Spain (12%), Italy (7%), Germany (6%), UK (6%). The main areas of foreign economic cooperation are marine fisheries, processing industry, training of specialists both for these sectors of the economy and for the implementation of large-scale structural transformations in the economy and the public administration system. Trade cooperation between Morocco and the Russian Federation is developing. In 2001, the trade turnover between the two countries amounted to $379.5 million.

Morocco is interested in expanding foreign economic relations with the Russian Federation, in particular in high-tech areas, as well as in the field of hydropower, irrigation and water management construction, geological exploration, marine fisheries, training, and tourism.

Economy of Morocco