Economy - overview Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and keeping inflation within manageable 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 dirham is now fully convertible for current account transactions; reforms of the financial sector have been implemented; and state enterprises are slowly being privatized. Drought conditions in 1997 depressed activity in the key agricultural sector, holding down exports and contributing to a 2.2% contraction in real GDP. Favorable rainfalls in the fall of 1997 have led to forecasts of robust, 8%-9% real GDP growth in 1998. Servicing the external debt, preparing the economy for freer trade with the European Union, improving education and living standards, and finding jobs for Morocco's youthful population remain long-term challenges.

GDP purchasing power parity - $107 billion (1997 est.)

GDP - real growth rate -2.2% (1997 est.)

GDP - per capita purchasing power parity - $3,500 (1997 est.)

GDP - composition by sector
agriculture: 14%
industry: 33%
services: 53% (1997)

Inflation rate - consumer price index 3% (1997 est.)

Labor force
total: 7.4 million
by occupation: agriculture 50%, services 26%, industry 15%, other 9% (1985)

Unemployment rate 16% (1997 est.)

Budget
revenues: $10.4 billion
expenditures: $10.75 billion, including capital expenditures of $1.9 billion (1996 est.)

Industries phosphate rock mining and processing, food processing, leather goods, textiles, construction, tourism

Industrial production growth rate 4.5% (1996 est.)

Electricity - capacity 3.788 million kW (1995)

Electricity - production 10.8 billion kWh (1995)

Electricity - consumption per capita 411 kWh (1995)

Agriculture - products barley, wheat, citrus, wine, vegetables, olives; livestock

Exports
total value: $6.9 billion (f.o.b., 1996)
commodities: food and beverages 30%, semiprocessed goods 23%, consumer goods 21%, phosphates 17% (1995 est.)
partners: EU 63%, Japan 7.7%, India 6.6%, US 3.4%, Libya 3.4% (1996 est.)

Imports
total value: $9.7 billion (c.i.f., 1996)
commodities: semiprocessed goods 26%, capital goods 25%, food and beverages 18%, fuel and lubricants 15%, consumer goods 12%, raw materials 4% (1995 est.)
partners: EU 57%, US 6.6%, Saudi Arabia 5.3%, Brazil 2.8% (1996 est.)

Debt - external $23.4 billion (1996 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 - 9.822 (January 1998), 9.527 (1997), 8.716 (1996), 8.540 (1995), 9.203 (1994), 9.299 (1993)

Fiscal year July 1-June 30

NOTE: The information regarding Morocco on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Morocco Economy 1998 information contained here. All suggestions for corrections of any errors about Morocco Economy 1998 should be addressed to the CIA.