It now seems that the referendum will take place, Morocco believing that the outcome will be in its favour. The Moroccan economy has been subject to considerable liberalization. State-owned enterprises are being privatized, and foreign investment is encouraged. Inflation is down, and the budget deficit has been reduced, but unemployment is exacerbated by a rapidly growing population and remains high. The government needs to distribute wealth more evenly, if it is to forestall social unrest.
Agriculture is important to the economy, although subject to periodic droughts.
For this reason, irrigation projects always carry high priority. The true value of agriculture is difficult to determine, because of the prevalent illegal growing and export of cannabis. However, it has recently been in dispute with the EU, Spain and Portugal. Fishing concessions have not been renewed because Morocco claims that Spain and Portugal have previously exceeded their quotas.