Morocco's economic competitiveness growing, Survey

A survey carried out by the "Observatoire de la Competitivite Internationale de l'Economie Marocaine" (OCIEM) has placed Morocco's financial sector, domestic market and investment environment in the category of "intermediary, higher rank."

The survey found, on the other hand, that the Kingdom's macro-economic dynamism, human resources, technological development and physical and institutional infrastructure are "weak."

Meanwhile, Morocco's external trade was ranked among countries with "weak results."

Despite a regression in the category of financial dynamism, the public observatory notes the continuation of remarkable performances in the sector.

Figures released by the think-thank reveal that as at end 2002, Morocco's reserves of foreign currency accounted for 8.5 months of exports, while external debt represented 35.7% of the GDP compared to 42.6% in 2001.

Improved results were also reported in domestic market with private consumption reaching in 2002 about 2.4%, as compared to a sample of reference countries where it reached rates regressed by 8,4% for Argentina, by 2.28% in Brazil and by 0.92% for Chile.

Also according to OCIEM, Morocco posted in 2003 good growth perspectives (5.5%), a rate that is among the highest ones in the said sample, and an average annual inflation rate of 1.37% between 1990 and 2002 that puts Morocco on top of the ranking of the reference countries.

Meanwhile, Morocco ranks among the least performing countries as regards physical and institutional infrastructures, technological development and human resources, as a result of the slow evolution of illiteracy (52.2%), the share of equipment goods in overall imports (20.1%) pc), the rate of personal computers (13.7 for each 1,000 inhabitants).

Morocco also had a negative performance in external trade, as a result of the regression of the share of manufactured goods exports in the GDP, which went down from 15.5% in 2002 to 14%, a poor corporate adaptability to market changes.

The survey found that tax burden, unfair competition, corruption and legal difficulties are the most cited constraints to economic takeoff.

Meanwhile, the easing of red-tape constraints, more rapid loan disbursement and labor-associated problems were welcomed by the polled industrialists.