Geography & Demographics

• Area: 710,000 km2
• Population: 33.7 million inhabitants (July 2007)
• Population growth: + 1.52%
• Life expectancy: 71.22 years
• Literacy rate: 52% (UNICEF)

Economy

• GDP: US$ 75.1 billion
• GDP per capita: US$ 2,416
• Share of main sectors in GDP: primary: 11.8%; secondary: 25.3%; services: 69.9% (including Administration)
• Growth rate: 5.8%
• Unemployment rate: 9.8%
• Inflation rate: 2.1%
• Main clients: France (27.9%), Spain (20.8%), United Kingdom (6.1%), Italy (5.4%)
• Main suppliers: France (15.8%), Spain (10.04%), Italy (6.4%), United States (6.1%)
• Exports: US$ 32 billion
• Imports: US$ 40 billion
• Remittances from Moroccans living abroad: US$ 6 billion (2007); US$ 5.8 billion in (2008)
• Travel receipts: -3.5% in 2008 compared to 2007
• Balance of payments: US$ 15.7 billion in 2007; US$ 19.2 billion in 2008 (*) 2007 statistics and 2008 estimates (**)

Population

• The Moroccan population is largely concentrated in the coastal regions and the northern plains. It is characterised by its youth, with two-thirds being under 30 years old. Population growth is controlled but remains high.
• Rural exodus, which initially concerned the large metropolises (Casablanca, Rabat-Salé, Agadir, Marrakech), is now also benefiting medium-sized cities (Fez, Meknès, Tangier, Kénitra).

EmigrationAbout three million Moroccans live abroad—they emigrated just after the Second World War—of which 80% are spread across the European continent: France, Spain, Italy, Belgium, the Netherlands, and Germany.

Social coverageParallel to an ambitious social programme, the government has mobilised in favour of employment and training, progressively putting in place a system of compulsory basic medical coverage for the entire population.

Growth

• Since the beginning of the new reign, Morocco has recorded a recovery in growth, but this remains fragile in the face of the demographic challenge. For 2008, it was around 5.8% after a 2007 marked by a rate of 2.7%, due to a significant rainfall deficit.
• Non-agricultural activity shows a growth rate close to 4.5%. This is notably supported by the good health of the construction and public works sector and the industrial and tertiary sectors (telecommunications and tourism).

UnemploymentAccording to the High Commission for Planning, the unemployment rate in Morocco increased by 4.2% in the 2nd quarter of 2010, reaching 8.2% against 8% the previous year in the same period. Even if unemployment affects 12.7% of the urban population and 3.3% of the rural environment, 140,000 jobs were created in the 2nd quarter of 2010 according to the HCP. At this date, 11,628,000 people aged 15 and over are considered active in Morocco, an increase of 1.6% compared to the same period last year, while the average activity rate went from 50.6% in the 2nd quarter of 2009 to 50.5% on the same date in 2010. The unemployment rate, which fell below the 10% mark in 2006, remained at 9.8% in 2007, with the crucial problem remaining the unemployment of young urban people (21.6%).

InflationInflation has been controlled, going from about 10% at the beginning of the 1990s to 1% in 2005, but it accelerated in 2006 (3.3%) under the combined effect of a revaluation of VAT on certain products; the partial indexation of fuel prices; the increase in certain services; and the rise in consumption driven by the increase in credit.

DirhamFor a long time, Morocco has pursued a strong dirham policy in order to control inflation. The national currency is indexed to a basket of currencies where the euro predominates at 80%. Since the 2001 devaluation, the dirham has depreciated by 10.6% against the euro and appreciated by 32.5% against the dollar. This trend seems to have continued in 2008.

Balance of paymentsThe current account balance remained in surplus in 2007 thanks to the continuous rise in remittances from Moroccans residing abroad (about US$ 6 billion) and tourism receipts (about US$ 6.1 billion). Slight decline in 2008.

RatingFinally, it should be noted that thanks to the consolidation of macroeconomic balances, Morocco's rating by international financial agencies has progressed. Since 2006, the Kingdom has occupied the same rank as Tunisia and Algeria (category 3), which helps it in attracting foreign direct investment (FDI).

DeficitThe budget deficit is falling (3.1%) and the Moroccan public debt relative to GDP confirms its downward trend in 2007 (63.5% at the end of the first half of 2007 against 66.3% in 2006).

Foreign policyForeign policy is deployed on three fronts: the Moroccan nature of the Sahara and the anchoring of the Kingdom to the European Union, to which is added particular attention to relations with the great powers and certain brotherly Gulf countries.

Moroccan SaharaOn 11 April 2007, Morocco presented to the Secretary-General of the United Nations a proposal for an autonomy plan for the Moroccan Sahara intended to serve as a basis for negotiations with the Polisario Front. In its resolution 1754 of 30 April 2007, the Security Council welcomed the "serious and credible efforts made by Morocco to move forward towards a settlement" and requested the opening of negotiations in "good faith without preconditions." Four sessions of negotiations have been held since, in the presence of Algeria and Mauritania. In April 2009, the Security Council renewed the mandate of MINURSO for a new period of 12 months.