Basic Country Facts

Economy Economic overview: Morocco faces the typical problems of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and keeping inflation within bounds. Since the early 1980s the government has pursued an economic program toward these objectives with the support of the IMF, the World Bank, and the Paris Club of creditors. The economy has substantial assets to draw on: the world's largest phosphate reserves, diverse agricultural and fishing resources, a sizable tourist industry, a growing manufacturing sector, and remittances from Moroccans working abroad. A severe drought in 1992-93 depressed economic activity and held down exports. Real GDP contracted by 4.4% in 1992 and 1.1% in 1993. Despite these setbacks, initiatives to relax capital controls, strengthen the banking sector, and privatize state enterprises went forward in 1993-94. Favorable rainfall in 1994 boosted agricultural production by 40%. In 1995, Morocco suffered from a drought said to be the worst in 30 years. Servicing the large debt, high unemployment, and vulnerability to external economic forces remain long-term problems for Morocco. GDP: purchasing power parity - $87.4 billion (1995 est.) GDP real growth rate: -6.5% (1995 est.) GDP per capita: $3,000 (1995 est.) GDP composition by sector: agriculture: 14.3% industry: 32.2% services: 53.5% (1993 est.) Inflation rate (consumer prices): 5.4% (1994) Labor force: 7.4 million by occupation: agriculture 50%, services 26%, industry 15%, other 9% (1985) Unemployment rate: 16% (1994 est.) Budget: revenues: $8.1 billion expenditures: $8.9 billion, including capital expenditures of $NA (1994 est.) Industries: phosphate rock mining and processing, food processing, leather goods, textiles, construction, tourism Industrial production growth rate: 0.1% Electricity: capacity: 2,620,000 kW production: 9.9 billion kWh consumption per capita: 361 kWh (1993) Agriculture: barley, wheat, citrus, wine, vegetables, olives; livestock Illicit drugs: illicit producer of hashish; trafficking on the increase for both domestic and international drug markets; shipments of hashish mostly directed to Western Europe; transit point for cocaine from South America destined for Western Europe Exports: $4 billion (f.o.b., 1994) commodities: food and beverages 30%, semiprocessed goods 23%, consumer goods 21%, phosphates 17% partners: EC 70%, Japan 5%, US 4%, Libya 3%, India 2% (1993) Imports: $7.2 billion (c.i.f., 1994) commodities: capital goods 24%, semiprocessed goods 22%, raw materials 16%, fuel and lubricants 16%, food and beverages 13%, consumer goods 9% partners: EC 59%, US 8%, Saudi Arabia 5%, UAE 3%, Russia 2% (1993) External debt: $20.5 billion (1994 est.) Economic aid: recipient: ODA, $297 million (1993) note: $2.8 billion debt canceled by Saudi Arabia (1991) Currency: 1 Moroccan dirham (DH) = 100 centimes Exchange rates: Moroccan dirhams (DH) per US$1 - 8.607 (January 1996), 8.540 (1995), 9.203 (1994), 9.299 (1993), 8.538 (1992), 8.707 (1991) Fiscal year: calendar year