This site is not updated. General Policy Framework Morocco boasts the largest phosphate reserves in the world, a diverse agricultural and fisheries sector, a high-potential tourism industry, a growing manufacturing sector, and a considerable inflow of funds from Moroccans working abroad. Most of Morocco's trade is with Europe, with France alone accounting for about a quarter of Morocco's imports and a third of its exports. The government has pursued market-oriented economic reforms since the early 1980s. It has restrained spending, revised the tax system, reformed the banking system, pursued appropriate monetary policies, eased import restrictions, lowered tariffs, launched a privatization program and liberalized foreign exchange controls.
Monetary policy serves primarily to maintain Morocco's exchange rate.
With the passing of power from the late King Hassan II to King Mohamed VI, Morocco has signaled its determination to intensify the economic reform process, and among other things, to streamline foreign and domestic investment procedures and devolve more power to regional governments. Among the companies currently slated for privatization are sugar plants, hotels, and banks. The national monopoly telecommunications firm Maroc Telecom and the national airline Royal Air Maroc are also scheduled for partial privatization in 2000, either through the Casablanca Stock Exchange or through strategic partnerships. American firms are currently competing for a concession to provide water and electricity distribution services to two cities in northern Morocco. Real GDP grew 6.3 percent in 1998 following a good harvest.