Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 1 
 
 
I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. With a population of close to 31 million in 2 007, Morocco's average annual rate of population 
growth is around 0.8 per cent (compared with  1.6 per cent annually between 1995 and 2001) 
(Table I.1).  The urban population continues to grow, from 54.5 per cent of the total population in 
2002 to 56.4 per cent in 2007.  Morocco's population is concentrated mainly on the plains and the 
coastal regions of the North-West, where the arable land is to be found.  Almost all of the country’s 
agricultural and industrial activities are in these regions.  The long Atlantic and Mediterranean 
coastlines encourage fishing.  Un employment remains a major con cern, even though it fell from 
11 per cent in 2002 to 9.8 per cent in 2007.  Unemployment is particularly high in urban areas 
(15.4 per cent), especially among young people aged 15 to 24 (31.6 per cent). 
2. Morocco is a middle-income country, with a per capita GDP of around US$2,435 in 2007, 
almost double the amount of US$1,386 in 2002.  It has a relatively diversified economy, although the 
services sector's contribution to GDP is sizeable and increasing overall (around two thirds).  The manufacturing sector occupies second place in terms of its contribution to GDP, followed by the 
agricultural sector (including livestock breeding, for estry and fishing) where it is declining;  the 
mining and energy sector only makes a modest contribution to GDP (Table I.1). 
3. Morocco's currency is the dirham (DH), tied to  a basket of currencies comprising the euro 
(80 per cent) and the United States dollar (20 per cen t).  The Central Bank, Bank Al-Maghrib (BAM), 
is responsible for Morocco's monetary policy;  in 2006, its role was redefined and its autonomy and 
control and supervisory powers were reinforced (C hapter IV(5)(v)(a)).  Under the foreign exchange 
regime, as determined by the Ministry of the Ec onomy and Finance, there are no restrictions on 
payments or transfers related to current international transactions.
1  Nevertheless, exporters must 
repatriate their export earnings and transfer them to the BAM within 150 days of the date of their 
receipt.2 
4. Tourism is Morocco's principal source of forei gn currency, followed by financial transfers 
from Moroccans resident abroad and phosphate produc ts.  Like its imports, Morocco's exports mainly 
consist of manufactured goods (around 63.7 per cent of imports and 65.3 per cent of exports of goods 
in value terms).  The EU is still Morocco's leadi ng trade partner, as regards both imports (51.4 per 
cent of the total) and exports (71.9 per cent of th e total).  Taken individually, France is the main 
supplier of goods to Morocco, followed by Spain (T able AI.3).  France is also the principal 
destination for Morocco's exports of goods, followed by Spain (Table AI.4).  Since the previous 
review of Morocco's trade policy (TPR), there ha s been a start in diversifying Morocco's trading 
partners. 
                                                      
1 On 21 January 1993, Morocco accepted Article VIII of  the Articles of Agreemen t of the International 
Monetary Fund. 
2 Foreign Exchange Board, online information, Circular No. 1606 (21 September 1993).  Viewed at:  
http://www.oc.gov. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 2 
 
 
Table I.1 
Selected macroeconomic indicators, 2002-2008 
 2002 2003 2004 2005 2006 2007 2008 
Miscellaneous        
Population ('000)a 29,184.0 29,520.0 29,892.0 30,172.0 30,594.0 30,842.0 31,177.0 
Life expectancy at birth (years) .. 69.5 .. .. 70.4 .. .. 
Gross rate of secondary education (%) 40.3 42.3 44.3 47.6 49.9 .. .. 
Nominal GDP (US$ billion) 40. 4 49.8 56.9 59.5 65.6 75.1 86.7 
Real GDP (annual variation %) .. 6.3 4.8 3.0 7.8 2.7 5.6 
Real non-agricultural GDP (annual 
variation %) .. 3.6 4.7 5.6 5.4 6.6 4.2 
Per capita GDP (at constant prices, 1998 US$)a 1,365.9 1,655.8 1,909.6 1,971.7 2,151.7 2,435.0 2,782.0 
Unemployment rate (%) 11.6 11.9 10.8 11.1 9.7 9.8 9.6 
Terms of trade (annual variation %) -7.3 5.7 -12.9 13.0 -4.3 0.6 .. 
 Excluding petroleum -8.6 8.5 -12.9 13.0 -4.3 0.6 .. 
Gross official reserves (end of period – US$ million)
b 10,008.9 13,716.0 16,298.0 16,080.0 19,997.0 23,616.0 .. 
Gross official reserves (months of imports, goods and services, not including factor income) 7.5 8.3 8.5 7.4 7.8 8.4 .. 
External debt – export ratio (%)a 128.7 118.1 100.1 74.3 69.5 62.6 .. 
        
Sectoral breakdown of GDPa % of GDP 
Agriculture, livestock, forestry and fishing 14.7 15.5 14.7 12.0 15.2 12.2 .. 
Mining and energy 4.8 4.5 4.3 4.8 4.6 4.8 .. 
Manufacturing  14.6 15.4 14.9 15.5 14.1 13.3 .. 
Servicesc 65.9 64.6 66.0 67.8 66.2 69.7 .. 
        
National accounts at market prices, 1998a % of GDP 
Consumption expenditure 76.2 75.5 75.8 76.8 76.0 76.6 77.2 
 Final consumption expenditure (hous eholds) 57.9 57.3 57.1 57.5 57.5 58.4 60.0 
 Final consumption expenditure 
(Government) 18.3 18.1 18.7 19.4 18.5 18.2 17.2 
Investment 25.9 27.4 29.1 28.8 29.4 32.5 36.3 
 Gross fixed capital formation 25.2 25.1 26.3 27.5 28.1 31.2 33.1 
 Change in inventories 0.7 2.2 2.8 1.3 1.3 1.2 3.2 
Imports of goods and non-factor services 32.1 31.5 34.3 37.9 39.7 44.9 51.2 
Exports of goods and non-factor services 29.9 28.7 29.4 32.3 34.2 35.8 37.2 
        
Gross national savings, as a percentage of 
GDPd 29.7 30.7 31.0 32.6 32.2 32.4 30.9 
 Non-government, as a percentage of GDPd 29.8 21.4 31.4 33.2 30.6 29.1 26.7 
        
Prices and interest rates        
Inflation (CPI, percentage change)e 2.8 1.2 1.5 1.0 3.3 2.0 3.9 
Interest rate on loans (%) 8.4 8.1 7.8 7.6 6.9 6.3 6.2 
Interest rate on (6- and 12-month) depo sits (%) 4.3 3.6 3.4 3.4 3.6 3.6 3.8 
        
Monetary aggregates (end of period)d  
M1 (% of GDP) 51.4 52.6 54.6 60.0 64.3 72.6 69.9 
M2 (% of GDP) 61.1 62.7 65.1 71.2 75.6 84.3 81.4 
M3 (% of GDP) 79.8 81.0 82.5 90.0 96.2 104.8 103.7 
        
Exchange rate        
Dirhams/US$ (annual average) 11.0 9.6 8.9 8.9 8.8 8.2 .. 
Real effective exchange rate (end of period)f 95.6 94.6 93.5 91.8 92.9 92.6 .. 
Nominal effective exchange rate (end of 
period)f 96.2 96.2 95.9 95.4 95.6 95.5 .. 
        
Government finance % of GDP  
Current revenue .. 21.3 21.5 23.2 23.4 25.4 26.8 
 Tax revenue .. 17.5 17.6 19.1 19.7 21.9 24.3 
Current expenditure .. 20.6 20.8 24.1 21.5 21.8 22.6 
 Payroll .. 11.2 11.2 11.7 10.9 10.7 10.4 
Current balance .. 0.7 0.7 -0.9 2.0 3.7 4.2 
Capital expenditure .. 4.2 4.2 3.9 4.1 4.6 5.5 
Overall balance .. -3.1 -3.0 -3.9 -1.5 0.7 0.4 
Financing requirements (-) or surplus (+) .. -3.3 -2.6 -5.4 -1.7 0.7 -0.1 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 3 
 
 
 2002 2003 2004 2005 2006 2007 2008 
Public debt         
External public debt (including the Treasury)        
 Total outstanding debt (US$ milli on) 13,957 14,360 13,990 12,527 13,709 15,823 16,386 
 Total outstanding debt (DH million) 142,31 7 126,024 115,310 115,871 115,927 122,043 132,700 
  % of GDP 32.0 26.4 22.8 22.0 20.1 19.8 19.3 
 Debt servicing (US$ million)  2,559 3,100 2,567 2, 379 2,108 2,450 2,347 
  % of current revenue 6.8 16.5 11.6 9.3 7.1 6.9 5.4 
       . .  
External debt of the Treasury (% of GDP) 20.8 16.5 13.9 13.1 11.3 10.7 10.0 
 Interest (% of GDP) 1.0 0.7 0.5 0.5 0.4 0.4 0.4 
Internal debt of the Treasury (% of GDP)  42.8 44.4 44.3 49.0 46.1 42.9 37.3 
 Interest (% of GDP) 3.0 3.0 3.0 2.9 2.8 2.7 2.2 
Total outstanding debt of the Treasury (% of 
GDP) 53.5 60.9 58.3 62.1 57.4 53.6 47.3 
.. Not available. 
a The figures for 2007 are provisional. 
b Excluding the IMF reserve position. c Including non-tradable services supplied by government departments, financial activ ities and insurance, services to businesse s, 
personal services, education, health, so cial welfare and the nominal sector. 
d The data for 2006 and 2007 are taken from forecasts. e Indices (2000 = 100), annual average. 
f Minus (-) means depreciation, index (2000 = 100). 
Source : International Monetary Fund (IMF), Kingdom of Morocco, 2007 Article IV Consultation – Staff Report;  Staff 
Statement , Country Report No. 07/323, September 2007, viewed at:  http://www.imf.org/ external/pubs/ft/scr/ 
2007/fra/cr07323f.pdf;  International Finance Corpora tion (IFC) CD-Rom, version 1.1.82;  World Bank, World 
Development Indicators , CD-Rom, 2008;  Kingdom of Morocco:  Ministry of the Ec onomy and Finance, Finances 
Publiques  (Government Finance), viewed  at:  http://www.finances.gov. ma/portal/page?_pageid=53,17813790&_ 
dad=portal&_schema=portal;  Kingdom of Morocco:  Ba nk Al-Maghrib – Annual Reports for 2003, 2004, 2005, 
2006 and 2007, viewed at:  http://www.bka m.ma/.;  information provided by the Treasury and External Finance 
Directorate. 
(2) RECENT ECONOMIC DEVELOPMENTS  
5. Since its previous TPR in 2003, Morocco has continued with its macroeconomic and 
structural reforms (Chapter III(4)(i)).  Taken togeth er with the growing diversification of the economy 
(particularly through the emergence of sectors such  as that of electronic equipment), the result has 
been a positive overall performance of the economy.   Over the period 2002-2007, the average annual 
rate of growth in real GDP was 4.5 per cent.  This was underpinned by strong internal demand and 
increased investment. 
6. At the end of 2008, growth was 5.6 per cent, boosted by the increase (16.3 per cent) in the 
value added of agricultural activities (excluding fish ing and forestry) and of non-agricultural activities 
(4.1 per cent);  there was nevertheless a decrease in  the latter as a result of lower demand from abroad 
caused by the international financial and economic cris is, as well as higher prices, particularly for oil. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 4 
 
 
Chart I.1
Destination and origin of trade, 2001 and 2007
Percentage
2001 2007
(a) Imports
(b) ExportsTotal: 11,036.7 million dollars Total: 31,650.4 million dollars
Total: 4,718.9 million dollars Total: 7,114.1 million dollarsEurope
57.8
including:
EU 54.9
Italy
5.2Europe
55.5
including:
EU 51.4Other Asian 
countries
5.9
Asia
9.8United States
3.7
United 
Kingdom
5.4Spain
9.5
Germany
5.1Other America
6.2
France
22.5Other Middle Eastern 
countries
6.8
Other 
European 
countries
2.9Saudi Arabia
4.7
Other EU 
countries
12.3Russia 3.4  Africa
5.5Other 
4.1United States
6.1
Italy
6.4Spain
10.4
Germany
4.8Other America
4.9
France
15.8
Other European 
countries
4.1Saudi Arabia
5.5
Other EU 
countries
14.0China
5.9
Africa
6.2Other 
1.5
Other Middle Eastern countries
3.6
Europe
74.7
including:
EU 72.9United States
3.9
United Kingdom
8.2 Spain
 14.6Italy
5.7Other America
2.6
France
32.5Other Asian countries         
3.4
Other 
European 
countries 
2.9Japan  3.0
Other EU 
countries
 11.9Africa 4.2Other 
3.7
India  3.4
Asia
8.5Brazil
3.2
Europe
74.8
including:
EU 71.9United States
2.4
United Kingdom
 5.2Spain
20.8Italy
5.1Other America
1.8
France
27.9Other Asian countries   
4.7
Other European 
countries
2.9
Other EU 
countries
12.9Africa  5.1Other 
4.2
India  3.8
Source :  WTO Secretariat calculations based on data taken from the United Nations Comtrade database.Asia
7.9
Russia 5.0
 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 5 
 
 
7. Since the 2006 reform (Chapter IV(5)(v)(a)), monetary policy, previously implemented 
jointly by the BAM and the Ministry of the Econom y and Finance (MEF), has been the responsibility 
of the BAM.3  Pursuant to Article 6 of the new Statutes of the BAM, which came into effect in 2006, 
the aim of monetary policy is to ensure price stability.  To accomplish this , the BAM has adopted a 
monetary policy strategy based on a multi-criteria a pproach as a framework for analysing the risk of 
inflation.  This framework is based on the analys is of a certain number of financial and economic 
indicators.  Intervention by the BAM, based on a series of instruments that form the operational 
context for monetary policy, is aimed at influencin g the interbank rate.  By regulating liquidity supply 
and demand on the interbank market, the BAM controls fluctuations in the interbank rate which, in 
turn, affect other interest rates, the terms fo r the supply and demand for credit and money in the 
economy, as well as other financial variables.4  The new framework also includes monitoring of a 
series of variables likely to have an impact on in flation.  These variables belong to five groups:  
overall demand;  pressure on pro duction capacity;  monetary aggregates and asset prices;  import 
prices;  and inflation forecasts over four quarters.  The findings of these various economic analyses and inflation forecasts are put before the BAM Counc il for a decision in the context of the quarterly 
report on monetary policy. 
8. The key policy interest rate of the BAM re mained unchanged at 3.25 per cent between 
December 2002 and September 2008 when, in the face of a renewed threat of inflation, it was 
increased to 3.50 per cent.  In its December 2008 qu arterly report, the BAM Council considered that 
one special feature of the economic environment was a gradual narrowing of the balance of risks, with 
an inflation forecast in line with th e price stability objective, and it decided to keep the key policy rate 
at 3.50 per cent while at the same time monitori ng closely the relation between the lower import 
prices and inflation and pressure on the employment ma rket.  In view of the persistent liquidity needs 
in the money market and the estimated trend in liquidity factors, the Council decided to lower the monetary reserve rate by three percentage point s, down to 12 per cent as of 1 January 2009.
5  I n  
January 2008, the monetary reserve rate had alread y been lowered from 16.5 per cent (its level since 
September 2003) to 15 per cent.  The deposit rate was in the range of 3.6 to 4.3 per cent;  the spread 
between deposit and lending rates remained relativel y stable.  The maximum conventional interest 
rate (not to be exceeded by loan institutions) vari ed between 15.2 and 12.9 per cent over that period, 
settling at 14.17 per cent in 2008.  The growth in mo netary aggregates had been modest between 2002 
and 2004 but accelerated in 2005-2006, only to return to more modest levels afterwards.  Monetary 
growth partly reflected the monetization of th e inflows of resources from tourism and foreign 
investment. 
9. These various measures enabled inflation (mea sured as the increase in the consumer price 
index) to be kept under control during the period under review, at rates ranging from 1.2 to 3.3 per 
cent.  There was a sharp rise in in flation at the beginning of 2008 following the increase in the price of 
foodstuffs and fuel.  During the latter months of  2008, however, it slowed down, falling from 4.8 per 
                                                      
3 In its relations with the Treasury, the BAM is henceforward not allowed to give the State any 
financial support, with the exception of  certain cash flow facilities that may not exceed 5 per cent of tax revenue 
for the previous financial year and only on an exceptional basis.  The BAM may suspend use of this facility 
when it considers that the money market situation so justifies.  For further information on this reform, see the information online from the Economic Commission for Africa (2007). 
4 Bank Al-Maghrib, online information, Stratégie et instruments de politique monétaire  (Monetary 
policy strategy and instruments).  Viewed at:  http://www.bkam.ma/wps/portal/net/kcxml/04_Sj9SPykssy0x PLMnMz0vM0Y_QjzKL94o3tQgESZnFe8QbebvqR2KIuSDEfD3yc1P1g9KK9L31A_QLckMjyh0dFQFQEB_
u/delta/base64xml/L0lDU0lKQ1RPN29na21DU1Evb0tvUUFBSVFnakZJQUFRaENFSVFqR0VKemdBIS80Sk
ZpQ28wZWgxaWNvblFWR2hkLXNJYjFRQSEhLzdfSV83QUsvMTI!?current=1. 
5 Bank Al-Maghrib (2008b). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 6 
 
 
cent in August to 3.5 per cent in October 2008, mainly  owing to the decrease in the price of basic 
foodstuffs;  the annual average has been 3.9 per cent. 
10. One salient feature of the period under review  has been an improvement in government 
finance following continued fiscal reform and contro l of operational spending.  The fiscal reform has 
made it possible to reduce the numb er of special regimes, to limit the number of products benefiting 
from a reduced rate of VAT and to modify th e VAT credit refund mechanism and make it more 
efficient.  More corporation tax was collected  following an increase in the number of companies 
subject to this tax and the introduction of more eff ective fiscal controls.  The result was that the public 
deficit fell from 3.9 per cent of GDP in 2005 to 1. 5 per cent in 2006 (Table I.1).  There was a surplus 
in the current fiscal balance during most of the period under consideration and the (overall) budget 
deficit was primarily caused by large-scale capita l spending.  In 2007 and 2008, government finance 
continued to improve as a result of  the consolidation of the performance in previous years and, in 
particular, an increase of around 25 per cent in annual revenue since 2005.  In 2007, there was a 
modest surplus of 0.7 per cent of GDP and, for 2008,  the surplus is estimated to be 0.4 per cent of 
GDP. 
11. The Finance Law (LF) for 2009 is aimed at more  public investment, increased social benefits 
(i.e. raising family allowances from DH 150 to DH  200 per child), as well as higher minimum wages 
and salaries for government and local authority offi cials.  The 2009 LF also provides for a measure of 
income tax relief by raising the non-taxable ba nd from DH 24,000 to DH 28,000 and lowering the 
marginal rate from 42 to 40 per cent in 2009 and 40 per cent to 38 per cent in 2010.  It is also planned 
to reduce income tax by raising the amount deduct ible for family living expenses from DH 180 to 
DH 360, increasing the amount that can be dedu cted for business expenditure, and easing the 
requirements for deduction of interest on loans taken out for the main residence.  Another aim of the 
LF 2009 is to boost exports by creating a speci al export support fund, with resources of 
DH 500 million, half of which will be for 2009.6 
12. The Treasury's total debt (i.e. outstanding exte rnal and internal debt) fell from 57 per cent of 
GDP in 2006 to 54 per cent in 2007.  Morocco's exte rnal debt has also been reduced and is currently 
around 20 per cent of GDP (Table I.1).  The exte rnal debt/export ratio decreased from 128.7 per cent 
in 2002 to 62.6 per cent in 2007.  According to the au thorities, this decrease is mainly attributable to 
active management of the external debt by conv erting it into public and private investment, the 
refinancing of expensive debt, advance repaymen t and improving the foreign currency structure. 
(3) TRADE AND INVESTMENT PERFORMANCE  
(i) Trade in goods and services 
13. Morocco has traditionally had a deficit in its trad e balance (Table I.2).  In 2007, the deficit 
reached US$14.1 billion, a marked rise in comparison  with 2006.  The traditional surplus in transfers 
(from the income of Moroccans resi ding abroad) and services resulted in a surplus in the current 
transactions account between 2002 and 2006, although th ere was a slight deficit in this account in 
2007.  Net external reserves ranged from the equivalent of 7.9 to 9. 6 months of imports of goods and 
non-factor services between 2002 and 2007. 
                                                      
6 Ministry of Finance, online information:  Principales dispositions du projet de Loi de finances 2009  
(Main provisions of the draft finance law for 2009).  Viewed at:  http://www.finances.gov.ma/portal/page?_ 
pageid=53,17812962&_dad=portal&_schema=PORTAL. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 7 
 
 
Table I.2 
Balance of payments, 2002-2008 
(US$ million) 
 2002 2003 2004 2005 2006 2007 2008a 
Current account 1,477.0 1,592.2 964.1 1,063.3 1,411.8 -69.7 -4,976.1 
 Trade balance -3,061.6 -4,335.7 -6,483.2 -8,203.6 -9,733.2 -14,081.4 -19,755.6 
 Exports (f.o.b.) 7,839.3 8,765.7 9,909.9 10,690.5 11,915.3 15,133.2 20,574.3 
 Imports (f.o.b.) -10,900.9 -13,101.4 -16,393.0 -18,894.2 -21,648.5 -29,214.6 -40,329.9 
        
 Services (net) 1,946.6 2,617.8 3,260.5 4,257.5 5,314.8 6,737.4 6,496.6 
 Transport -76.6 -217.9 -348.6 -282.1 -259.6 -388.1 -482.2 
 Travel 2,201.7 2,678.9 3,350.1 4,004.5 5,275.0 6,289.0 6,252.7 
 Communication services 212.0 227.4 292.4 284.0 321.9 294.7 492.6 
 Insurance services -17.1 19.3 12.7 -8.1 -16.9 -42.0 -24.7 
 Licensing royalties and fees -29.4 -3 .6 -20.4 -32.7 - 46.1 -31. 7 -40.8 
 Other business services -94.7 74.0 215.2 505.4 427.1 832.9 832.5 
 Services provided to or received 
by government departments n.e.s. -249.2 -160.4 -241.1 -213.6 -386.6 -217.4 -533.5 
        
 Balance of the goods and services 
account -1,115.0 -1,717.9 -3,222.7 -3,946.1 -4,418.4 -7,344.0 -13,259.0 
        
 Income (net) -738.4 -789.9 -676.2 -375.0 -477.6 -405.4 -776.5 
 Credit 376.8 1,160.9 506.0 695.2 747.4 956.3 853.9 
 Debit -1,115.1 -371.0 -1,182.3 -1,070.2 -1,225.0 -1,361.7 -1,630.3 
        
 Balance of the goods, services and 
income account -1,853.3 -2,507.8 -3,898.9 -4,321.1 -4,896.0 -7,749.4 -14,035.4 
        
 Transfers (net) 3,330.3 4,100.0 4,863.0 5,384.4 6,307.8 7,679.7 9,059.4 
 Public 107.2 81.3 137.2 240.7 262.1 281.2 1,224.0 
 Private 3,223.1 4,018.7 4,725.8 5,143.7 6,045.7 7,398.5 7,835.3 
        
Capital and financial transactions 
account -1,288.1 -1,280.3 -683.0 -655.2 -902.0 -36.9 5,158.6 
 Capital account (net) -6.1 -10.1 -8.0 -4.5 -2.9 -3.0 -2.2 
 Capital transfers -6.1 -10.1 -8.0 -4.5 -2.9 -3.0 -2.2 
        
 Financial account (net) -1,282.0 -1, 270.2 -675.0 -650.7 -899.1 -33.9 5,160.8 
 Direct investment 452.4 2,303.3 863.5 1,578.5 2,003.5 2,183.5 2,079.3 
 Abroad -28.3 -12.2 -30.9 -74.6 -444.7 -621.8 -379.6 
 In Morocco 480.7 2,315.5 894.4 1,653.1 2,448.2 2,805.3 2,458.9 
 Portfolio investment -7.6 7.6 577.5 59.6 -295.4 -81.5 -90.5 
 Assets .. .. .. -3.8 2.9 -15.3 -246.6 
 Liabilities -7.6 7.6 577. 5 63.4 -298.3 -66.1 156.1 
 Other investment -1,089.0 -1,937.2 -223.1 66.1 78.6 -67.9 1,646.8 
 Commercial credits 385.3 52.6 820.5 325.4 403.9 -395.4 109.7 
 Loans -1,458.8 -1,921.4 -1,290.1 -451.4 -309.1 370.1 1,326.5 
 Cash and deposits -15.4 -68.4 246.5 192.1 -16.2 -42.5 210.6 
Reserve assets -637.8 -1,643.9 -1,892.9 -2,354.9 -2,685.8 -2,068.1 1,525.2 
Statistical discrepancy -188.9 - 311.9 -281.1 -408.1 -509.7 106.6 -182.5 
        
I n d i c a t o r s  ( % )         
 Trade balance/GDP -7.6 -8.7 -11.4 -13.8 -14.8 -18.7 .. 
 Current account/GDP 3.7 3.2 1.7 1.8 2.2 -0.1 .. 
.. Not available. 
a Preliminary figures.  The exchange rate  is based on the first 10 months of 2008. 
Source : Foreign Exchange Board, online information, Balance des paiements  (Balance of payments),  various publications.  
Viewed at:  http://www.oc.gov.ma/ Publications/pub lications.htm#5. 
14. Manufactures are Morocco's principal goods imports  and exports (Chart I.2).  Machinery and 
transport equipment, textiles and chemicals are th e major imports (Table AI.1).  Primary products, 
mainly agricultural foodstuffs and the products of  mining and quarrying, are also imported.  In 
addition to the principal products mentioned above  (Section (1)), details regarding the products 
exported by Morocco are shown in Table AI.2. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 8 
 
 
0%10%20%30%40%50%60%70%80%90%100%
2001 2002 2003 2004 2005 2006 2007Chart I.2
Structure of trade, 2001-2007
(a) Exports 
(b) Imports
Source :    WTO Secretariat calculations based on data taken from the United Nations Comtrade database.0%10%20%30%40%50%60%70%80%90%100%
2001 2002 2003 2004 2005 2006 2007Fish preparations
Molluscs
Oranges
Other food productsCalcium phosphate
Other mineral ores
Other chemicalsElectrical machinery
Clothing
Non-organic acids
Food products
Agricultural raw materials
Iron and steelFuelChemicals
Other semi-processed
 products
Non-electrical machineryProducts of the automobile industry
Textiles 
Others
Electrical machineryOther
 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 9 
 
 
15. The EU is still Morocco's leading trade partne r, as regards both imports (51.4 per cent of the 
total) and exports (71.9 per cent of the total).  Fr ance remains the main individual supplier providing 
27.90 per cent (22.5 per cent in 2001) of total imports;  Spain, the United Kingdom, Italy, and 
Germany are the other principal sources of Morocco's imports within the EU (Table AI.3).  Outside 
the EU, Morocco also imports goods, primarily from th e United States of America, China, Russia, and 
Saudi Arabia;  there are few imports from othe r regions.  France is the principal individual 
destination, taking 27.9 per cent of Morocco's exports of goods in 2007, followed by Spain, the United Kingdom, Italy, and Germany (Table AI.4). 
16. Morocco is a net exporter of services with a net ba lance of US$5.4 billion in 2006 (Table I.2).  
Earnings from exports of services are equivalent to over 80 per cent of exports of goods and more 
than doubled between 2002 and 2006.  This is primarily the result of earnings from tourism. 
(ii) Investment 
17. There was a marked increase in foreign direct  investment (FDI) during the period under 
review, reaching a record level of DH 37.6 billion in 2007 (Table I.3), attributable to privatization 
operations.  Investment in tourism, but also in r eal estate, telecommunications, transport and industry, 
have had a strong impact on the trend in FDI.  A ccording to the authorities, since 2006 flows of FDI 
appear to have been gradually moving away from th e privatization operations, for example in several 
sectors (tourism, real estate, telecommunications, insurance, banking, industry and transport) there has been a strong increase in FDI unrelated to privatizati on.  France is still the main investor, followed by 
Spain, the United Arab Emirates, the United Kingdom, and Germany. 
Table I.3 
Foreign direct investment in Morocco, 2002-2008 
(DH million) 
 2002 2003 2004 2005 2006 2007 2008 
Total 5,875.8 23,256.9 9,484.7 26,129.6 25,482.4 37,595.0 27,070.8 
By sector:        
Tourism 408.6 186.2 1,430.8 3,080.9 7,925.5 12,421.7 5,693.7 
Real estate 1,824.9 1,685.0 2,039.6 2,422.2 3,980.7 7,590.8 8,925.8 
Industry 1,176.1 18,791.2 1,796.1 2,273.3 8,684.7 3,314.4 1,390.5 
Telecommunications 425.7 618.7 717.7 15,311.1 .. 3,086.9 .. 
Energy and mining 182.6 105.9 336.1 377.4 93.2 2,818.5 1,679.5 
Transport 14.2 14.0 43.4 300.2 39.5 2,737.5 161.7 
Banking 64.4 56.3 1,524.9 44.0 1,500.9 1,823.7 4,969.1 
Holdings 13.9 0.1 30.7 210.0 .. 847.8 2,211.2 
Major public works 15.0 66.2 105.7 159.8 .. 532.1 243.3 
Trade 251.1 483.7 611.8 353.7 858.6 334.7 176.2 
Agriculture 22.2 24.3 29.4 6.3 .. 33.0 25.5 
Insurance .. 162.1 165.7 1,144.9 1,492.7 21.4 81.5 
Fishing 23.6 124.3 12.9 4.4 .. 3.7 21.1 
Surveys 19.1 1.1 69.9 3.5 .. .. .. 
Other services 1,350.2 821.1 477.5 415.3 .. 2,255.9 1,461.7 
Miscellaneous 84.2 116.7 92.5 31.0 .. 127.9 30.0 
By country of origin:        
France 2,252.0 2,889.2 4,744.8 19,843.3 8,645.7 14,273.9 10,070.3 
Spain 389.6 18,094.7 476.6 1,441.8 7,191.3 6,108.4 2,464.9 
United Arab Emirates 118.2 222.4 330.8 727.7 773.6 3,809.6 4,816.9 
United Kingdom 356.0 244.4 454.9 451.6 931.3 2,576.3 1,208.0 
Germany 492.6 144.8 475.1 855.5 939.7 1,646.6 1,264.7 
Kuwait 431.4 16.8 18.0 222.5 1,011.8 1575.2 117.0 
United States of America 379.7 471.3 447.5 226.4 863.7 1,543.7 765.2 
Switzerland 240.3 260.1 676.2 758.3 905.7 1,325.2 1,538.7 
B.L.E.U.a 260.5 190.3 346.1 426.3 2,604.6 1,318.2 1,014.9 
Italy 68.7 107.4 266.0 209.7 334.6 864.4 753.1 
Saudi Arabia 171.7 163.3 353.6 361.9 329.9 636.7 510.7 
Netherlands 239.3 74.1 125.4 260.0 227.3 504.1 187.8 
Qatar 5.9 0.3 26.0 49.6 357.4 132.6 
Tunisia 52.4 152.2 4.7 27.9 40.0 169.5 67.0 WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 10 
 
 
 2002 2003 2004 2005 2006 2007 2008 
Sweden 1.2 16.2 112.5 155.0 45.7 137.1 92.1 
Ireland .. .. 10.2 6.6 39.8 121.7 22.4 
Cyprus .. .. .. .. .. 89.1 8.4 
Lebanon 11.1 9.4 12.8 17.4 65.7 75.4 51.0 
Egypt 1.2 0.3 13.0 9.5 84.9 65.9 79.7 
Gabon .. .. .. .. .. 64.6 2.4 
Japan 8.8 .. 3.5 3.9 25.1 64.5 49.6 
Portugal 236.6 34.6 20.7 60.4 50.4 56.2 40.3 
Mauritania .. .. .. .. .. 45.4 1.6 
Brazil .. .. .. .. .. 37.8 506.0 
Canada 9.9 5.3 13.3 8.3 32.6 37.0 39.8 
Hungary .. .. 0.1 0.5 278.6 31.4 44.8 
Denmark .. .. .. .. .. 27.0 65.5 
Other countries 148.7 159.8 578.9 607.4 10.8 536.8 1,155.4 
.. Not available. 
a Belgo-Luxembourg Economic Union. 
Source : Foreign Exchange Board, online information, Flux financiers (Financial flows).  Viewed at:  
http://www.oc.gov.ma/FluxFinan ciers/FluxFinanciers.asp. 
18. The significant increase in investment has been boosted, inter alia , by the continued reforms 
aimed at enhancing the business climate and factor costs, the initiation of infrastructure projects, as 
well as new sectoral polices.  FDI nevertheless fe ll to DH 26.3 billion in 2008, although it remained 
above the average for 2002-2007.  The authorities are expecting a further decrease of 20 per cent in 
FDI in 2009, in view of the general slowdown in FDI flows to Africa. 
(4) OUTLOOK  
19. According to the IMF, the outlook for Moro cco's economy remains positive.  For the time 
being, Morocco has been spared to some extent the global financ ial upheavals because its external 
debt is relatively low and long-term, and because its macroeconomic policies have  been strengthened.  
Economic growth will probably remain relatively st rong in the medium term and the balance in the 
external current account stable, even though a sm all deficit may emerge in the medium term. 
20. After having reached 5.8 per cent in 2008 (accordi ng to the estimates), particularly because of 
the rebound in agriculture, growth should slow to around 5 per cent until 2 010 as the agricultural 
sector returns to its normal level and the effects of the slowdown in Europe start to be felt by the 
Moroccan economy.  The MEF expects growth of 5.8 per cent in real GDP in 2009, with growth in 
the agricultural sector (together with fishing and forestry) of 15 per cent and 4.1 per cent in the 
non-agricultural sector.7 
21. The inflation rate will probably hover around 2. 5 per cent in 2009 (compared to 3.9 per cent 
in 2008), and 2 per cent in the medium term, partly because of imported inflation.8  There was a 
deficit of around 5 per cent in the external current account balance in 2008, but this should improve in 
the medium term.  Prudent management of the debt, continued flows of FDI and remittances from 
Moroccans resident abroad should cont inue to boost external reserves.9 
                                                      
7 Ministry of the Economy and Finance (2008b). 
8 International Monetary Fund (2008). 
9 Idem . Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 11 
 
 
22. The authorities are determined to pursue their fi scal consolidation efforts made in recent years 
and to achieve their target of keeping the (prima ry) fiscal deficit below 3 per cent of GDP in the 
medium term.10 
                                                      
10 Idem .