Morocco Introduction Key Economic Facts Risk Assessment (Provided by Coface) Morocco is a country located in North Africa. It has a coast Income Level (by per capita Lower Middle Income Country rating: B - Political and economic uncertainties on the Atlantic Ocean that reaches past the Strait of GNI): and an occasionally difficult business environment can Gibraltar into the Mediterranean Sea. It is bordered by Level of Development: Developing affect corporate payment behavior. Corporate default Spain, Algeria, and Western Sahara. GDP, PPP (current international $291.66 billion (2019) Much of Morocco is mountainous. The $): probability is appreciable. Atlas Mountain and Rif Mountains are GDP growth (annual %): 2.48% (2019) Business Climate rating: A4 - The business environment located on the northern coast and interior. GDP per capita, PPP (current $7,826.17 (2019) is acceptable. Corporate financial information is sometimes The government system is a international $): neither readily available nor sufficiently reliable. Debt parliamentary constitutional monarchy; the chief of state is External debt stocks, total $54,967,618,609.90 (2019) collection is not always efficient and the institutional the king, and the head of government is the prime minister. (DOD, current US$): Morocco is a member of the League of Arab States (Arab Manufacturing, value added (% 14.92% (2019) framework has shortcomings. Intercompany transactions League). of GDP): may thus run into appreciable difficulties in the acceptable Current account balance (BoP, -$4.92 billion (2019) but occasionally unstable environments rated A4. current US$): Strengths Inflation, consumer prices 0.20% (2019) (annual %): • Favorable geographical location, close to the Labor force, total: 12,203,685 (2020) European market Unemployment, total (% of 8.95% (2020) • Strategy to move to high-end markets and diversify total labor force) (modeled ILO estimate): industrial production Location: Northern Africa Imports of goods and services $57.49 billion (2019) • Political stability and commitment to reform Capital City: Rabat (GMT) (current US$): • Growing integration in the African market Chief of State: King Mohammed VI Exports of goods and services $46.81 billion (2019) • Support from the international community, particularly (current US$): Head of Govt.: Prime Minister Saad-Eddine al- Europe, which is supporting green investments in Othmani GDP Composition % Currency: Moroccan dirham (MAD) Agriculture Services Industry Manufacturing Morocco to the tune of USD 300 million, through 2 Major Languages: <p>Arabic (official), Berber languages projects. (Tamazight (official), Tachelhit, 51 • Significant and growing market Tarifit), French (often the language of 12 25 15 business, government, and Weaknesses diplomacy)</p> *Although Manufacturing is included in the Industry figures, it is also separately • Economy highly dependent on the performance of the Primary Religions: <p>Muslim 99% (official; virtually all reported because it plays a critical role in economy. agricultural sector (14% of GDP and 40% of the Sunni, <0.1% Shia), other 1% Rankings (includes Christian, Jewish, and population) and, therefore, on the climate and water Baha'i); note - Jewish about Index Rank availability, as well as on the European Union 6,000 (2010 est.)</p> Corruption Perceptions Index 80 / 180 • Competition from other Mediterranean countries such Calling Code: 212 Global Competitiveness Index 75 / 141 as Turkey or Egypt Voltage: 127/220 Global Enabling Trade Index 49 / 136 Global Services Location Index 27 / 55 • Significant social and regional disparities between Key Websites Index of Economic Freedom 74 / 179 urban and rural areas, with recurrent discontent in Main Government Page: maroc.ma International Logistics Performance Index (LPI) 109 / 160 some regions. Poverty rate remains high. Commerce Ministry: mcinet.gov.ma Inward FDI Potential Index 89 / 139 • High unemployment rate, especially among young Investment Promotion invest.gov.ma KOF Index of Globalization 61 / 185 people, low participation of women in the labor Agency: Networked Readiness Index (NRI) 78 / 139 market, and lack of housing Open Budget Index 58 / 115 • Weak productivity and low competitiveness • Political tensions with regional neighbors U.S. Embassy U.S. Embassy Rabat Km 5.7, Avenue Mohamed VI Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV Morocco Souissi, Rabat 10170, Morocco Phone: (212) 0537 637 200 https://ma.usembassy.gov Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.