Low growth rates, bright prospects

Low growth rates, bright prospects

Despite the recent upheavals caused by the earthquake and low growth rates, Morocco remains an interesting location: the kingdom attracts foreign companies with political stability, good infrastructure and tax incentives. Numerous European companies are active in special economic zones, with the automotive sector and the aircraft industry being particularly well represented.

Other important industries include textile manufacturing, agriculture and tourism. In addition, Morocco has developed into an important financial centre and is increasingly focusing on the production of green energy and hydrogen – also for export.

Economy. According to the IMF, the economy in Morocco grew by 0.8 percent in 2022 (North African average: 4.1 percent). For the current year, economists have calculated a growth rate of 3.1 percent. For 2024, 3.0 percent are expected.

The long-term development is positive: Morocco’s gross domestic product per capita rose from the equivalent of 1590 to 3528 dollars over the last 20 years. Inflation has recently been at a moderate level of 4.1 percent. The public debt is at 70.1 per cent of GDP (Arbeitslosenquote: 10,7 %).

Population. Morocco has more than 38 million inhabitants. Annual population growth has declined from 1.4 to 1.0 percent in the last ten years. Experts predict a further decline to 0.7 percent until 2032. In the last 20 years, the fertility rate has fallen from 2.7 to 2.3 per woman.

Life expectancy was at 74 years recently. 100 percent of the inhabitants have access to electricity (twenty years ago, it was 73 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Morocco ranks 94th out of 180. With a score of 38 points the country has, according to TI, made some step backwards: in 2018, Morocco scored 43 points. In 2015, however, it was only 36 points. The score puts Morocco on the same level as Argentina, Brazil, Ethiopia and Tanzania.

Sources and further information:

World Bank: https://data.worldbank.org/country/morocco

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/marokko

Germany Trade & Invest: https://www.gtai.de/de/trade/marokko/wirtschaftsumfeld/das-koenigreich-zeigt-sich-in-krisenzeiten-widerstandsfaehig-255052

Transparency International: www.transparency.org/en/cpi/2022/index/nga