Morocco has what type of economy

The country's debt burden has declined steadily since the mids: In , Morocco rescheduled its debt to the Paris Club, and in , the French and Spanish governments agreed to relieve part of the country's debts by converting them into investments. Morocco's economic difficulties—trade imbalance and high unemployment—are offset by tourism receipts, remittances from its migrant workers abroad, and foreign investments. Some 2. Income from foreign investments tripled that year, mostly as a result of the sale of a mobile-phone license to a Spanish company.

Government bureaucracy is a major impediment to the conduct of business in Morocco. Bureaucratic inefficiencies permeate all government ministries and the commercial court system. Corruption is widespread at all levels of the public sector , largely as a result of low wages and difficult living conditions. Toggle navigation. Also read article about Morocco from Wikipedia. User Contributions:. Comment about this article, ask questions, or add new information about this topic: Name:.

E-mail: Show my email publicly. Human Verification:. Public Comment: characters. Send comment. In the s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in , King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown.

Subsidies on butane gas and certain food products remain in place. Lower tourism earnings, coupled with subdued domestic demand, reduced tax revenues at the same time the government incurred high pandemic-related expenditures.

The need to finance the deficit increased borrowing, pushing government debt to Inflation is expected to remain low. On 9 March , Moroccan authorities widened the fluctuation band of the dirham to increase the ability of the economy to absorb external shocks and improve competitiveness. The Bank Al-Maghrib has hardly intervened in the foreign exchange market despite decreasing its benchmark interest rate by 25 basis points in March and by another 50 basis points to 1.

In , Morocco ranked 53rd of countries. Real GDP growth is projected to rebound to 4. During the third quarter of , exports of automotive parts and phosphate and derivatives rebounded and are expected to strengthen more in the near term as global demand improves.