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Morocco

Last updated: February 23, 2023
The Kingdom of Morocco is a country with enormous economic potential. It is located on the Mediterranean and Atlantic coasts in northwestern Africa, making it the gateway to the African market for goods from America and Europe. The capital is Rabat on the western Atlantic coast. The economic center is Casablanca. Morocco has about 37 million inhabitants. As head of state, H.M. King Mohammed VI has initiated a transformation process through political reforms and the path of economic liberalization since his accession to the throne in 1999. Thanks to a constitutional reform in 2011, the king always appoints the leader of the strongest parliamentary faction as prime minister after parliamentary elections. Since October 2021, Prime Minister Aziz Akhannouch has led the government.
The economic dynamism is reflected in the growth of Morocco’s gross domestic product from just under $38 billion in 2000 to $113.5 billion in 2020. In 2021, the gross domestic product was $142.9 billion, with real economic growth of nearly eight percent. This tremendous economic success was achieved despite the onset of the global financial crisis in 2008 and the political upheavals in the region since 2011. Investors benefit from stable exchange rates and relatively moderate inflation rates.

The agricultural sector, which today still accounts for around 34 percent of all jobs, is of central importance. State structural programs support it with the aim of creating a sustainable and environmentally conscious agriculture. The country’s infrastructure is being steadily expanded. Since 2018, Morocco has had the first high-speed rail system in Africa. Several major ports have also been opened or are under development since the early 2010s. There are state-of-the-art universities such as Mid-Park with research facilities for nanotechnology and microelectronics. Morocco is also home to the world’s largest solar power plant and the expansion of renewable energy is flourishing.

Economically, a modern transport and telecommunications infrastructure, low production costs and proximity to the European market speak in favor of Morocco. In addition, investment incentives and tax benefits attract the automotive industry (assembly, subcontracting), aviation and call centers.

The Covid 19 pandemic hit the tourism sector hard, accounting for nearly one-fifth of GDP in 2019. In addition, agriculture was hit by drought, resulting in a seven percent contraction in GDP in 2020. However, the government rose to the challenge and established a strategic investment fund to support the private sector and restructure social security and the network of state-owned enterprises. This is expected to make the economy more stable in the medium and long term.

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