Economy of Morocco

Agriculture employs about 40% of Morocco's workforce. On the Atlantic coast, where there are extensive plains, olives, citrus fruits, and wine grapes are grown, largely with water supplied by artesian wells. Livestock are raised and forests yield cork, cabinet wood, and building materials. Part of the maritime population fishes for its livelihood. Agadir, Essaouira, El Jadida, and Larache are among the important fishing harbors. In the rainy sections of the northeast, barley, wheat, and other cereals can be raised without irrigation.

Manufacturing accounts for about one-sixth of GDP and is steadily growing in importance in the economy. Two particularly important components of Morocco's industrial makeup are processing raw materials for export and manufacturing consumer goods for the domestic market. Processing phosphate ore into fertilizers and phosphoric acid for export is a major economic activity. Food processing for export (canning fish, fresh vegetables, and fruit) as well as for domestic needs (flour milling and sugar refining) is also important, and the manufacture of textiles and clothes using domestically produced cotton and wool is a major source of foreign exchange. The manufacturing sector produces light consumer goods, especially foodstuffs, beverages, textiles, matches, and metal and leather products. Heavy industry is largely limited to petroleum refining, chemical fertilizers, automobile and tractor assembly, foundry work, asphalt, and cement.

The automotive sector is already Morocco's leading export sector and has made the Kingdom the leading car manufacturer in Africa. The Kingdom's fast integration into the global economy was also facilitated by numerous free trade agreements with the United States and the European Union. These agreements contributed undoubtedly in a positive way towards the emergence of export activities in the country. Morocco has two major "traditional" car manufacturers: Renault and PSA. The Chinese company BYD is a pioneer when it comes to electric cars and Morocco has signed a memorandum of understanding with the Chinese automaker to set up an electric car factory near Tangier, the first of its kind in the country. Production and exports are expected to continue to rise thanks to the recent launch of a second production line by Renault. The production of the plants reached 402’000 vehicles in 2018.

The mining sector is one of the pillars of Morocco's economy. Morocco produces a number of minerals and metals, most importantly, phosphates, silver, and lead.

The construction and real estate sectors are also a part of the investment boom in the country. Increasing public investment in ports, housing development projects, and roads as well as the boom in the tourism sector have been a big shot in the arm for the construction sector. The rise in construction activities and efforts to improve infrastructure are creating many opportunities for public-private partnerships. The real estate sector has also been seeing record investments.

Morocco is a major touristic destination. Tourism is thus a major contributor to both the economic output and the current account balance, as well as a main job provider. The "Plan Azur", is a large-scale project initiated by king Mohammed VI, is meant to internationalize Morocco. The plan provides for creating six coastal resorts for holiday-home owners and tourists: five on the Atlantic coast and one on the Mediterranean. The plan also includes other large-scale development projects such as upgrading regional airports to attract budget airlines, and building new train and road links.

The retail industry represents 12.8% of Morocco's GDP and 1.2m people - 13% of the total workforce - are employed in the sector. Organised retail, however, represents only a fraction of domestic trade, as shoppers rely on the country's 1151 souks, markets and approximately 700,000 independent groceries and shops. Changing consumption habits, increasing purchasing power and the growing number of tourists should boost the development of malls and luxury shopping. However, independent stores and markets should continue to account for most domestic trade in the foreseeable future.

The insurance sector in Morocco is witnessing dynamic growth, driven foremost by developments in life insurance, which has superseded motor insurance in the past two years as the leading segment of the market with around one-third of total premiums. Behind life and auto insurance, accident, work-related accident, fire and transport insurance were the largest contributors. The insurance penetration rate is 2.87% of GDP, while the insurance density is $69 per person.

With a workforce of some 41,000 employees, the sector contributes 7% to annual GDP and is one of the country's leading recipients of foreign direct investment (FDI). Under the development plan, the sector should employ 125,000 people by 2012 and contribute 10% of GDP. With the penetration rates of 69.4% from mobile phones and 8.95% for fixed lines, the Moroccan telecoms industry is set to continue to grow.