IV.

Economy

Morocco is primarily an agricultural country, and its dependence on agriculture has hampered economic growth. While Morocco was a French colony, the economy was shaped by French interests. Fruits and vegetables, and phosphate rocks for fertilizer, became its chief exports. Morocco’s economic ties to Europe remain strong, and the country hopes to strengthen these ties by joining the European Union (EU). Manufacturing and agribusiness have grown along the coast, which is far more developed than the interior of the country, where traditional farming continues.

Tourism has become increasingly important to Morocco’s economy, with more than 2 million tourists visiting the country each year. Tourist complexes have been built along the coast, and large new hotels have sprung up in Fès, Marrakech, and other popular tourist destinations. Agadir is the chief coastal resort.

In 2005 gross domestic product (GDP) was estimated at $51.6 billion, or $1,711.10 per person. (GDP is a measure of the value of all goods and service a country produces.) The government’s budget in 2005 included revenues of $16.2 billion and expenditures of $14.9 billion.

A.

Agriculture

Despite Morocco’s dependence on agriculture, only 19 percent of the land is cultivated. Agricultural output is reliant on weather conditions, particularly rainfall, and income from agriculture depends on agricultural prices, neither of which the country controls. The principal crops of Morocco are cereals, particularly wheat and barley; root crops such as potatoes and sugar beets; vegetables, including tomatoes and melons; fruits, particularly citrus fruits, grapes, and dates; and sugarcane. A wide variety of other fruits and vegetables are also grown. Livestock includes sheep, goats, and cattle.

B.

Forestry and Fishing

Forestry is not an important industry in Morocco. Cork oak forests of the Gharb region supply industrial cork. Much of the timber cut is used as fuel.

Fishing has become increasingly important to the economy, and the waters off the coast of Morocco are rich in fish. Conflicts developed with the European Union (EU) in the late 1990s over European, especially Spanish, fishing fleets operating in Moroccan waters. Spanish fishers threatened to block imports of fish from Morocco if their boats were barred from Moroccan waters. An agreement reached with the EU reduced European fish catches to protect endangered stocks of fish and boost Morocco’s fishing industry. The chief fishing centers in Morocco are Agadir, Safi, Essaouira, and Casablanca. The fish catch includes sardines, tuna, mackerel, anchovies, and shellfish. Much of the catch is processed—frozen or canned—for export in Morocco.

C.

Mining

Morocco is a leading producer of phosphate rock, used for fertilizer. Morocco has about two-thirds of the world’s known supply of phosphate rock. Output was 8.5 million metric tons in 2004. Other minerals, produced in small amounts, include coal, iron ore, silver, and zinc.

D.

Manufacturing

The government has promoted efforts to expand Morocco’s manufacturing sector since the 1980s to reduce the country’s dependence on agriculture and phosphate exports. The major industry is the processing of phosphates. Steel mills were built during the 1980s and 1990s, and petroleum refining has increased in importance. Food-processing and textiles have also become significant industries. Handicrafts are supported by the government, and Moroccan artisans produce fabrics, leather goods, ceramics, rugs and carpets, and woodwork of high quality.

E.

Energy

Some 94 percent of Morocco’s electricity production in 2003 was generated in thermal plants, and the remainder was produced in hydroelectric facilities. Morocco’s output of electricity in 2003 was 17.3 billion kilowatt-hours.

F.

Currency and Banking

Morocco’s unit of currency is the dirham, consisting of 100 centimes. Currency is issued by the Banque al-Maghrib (1959), the state bank. The country also has a number of large private banks.

G.

Foreign Trade

Morocco’s leading exports are phosphates and phosphoric acid. Other exports include citrus fruit, wheat, fish, and minerals. Exports in 2003 earned $8.8 billion. Imports were valued at $14.2 billion. Imports typically consist of industrial equipment, food products, manufactured goods, and fuels. The principal purchasers of Morocco’s exports are France, Spain, the United Kingdom, Italy, and the United States; chief sources of imports are France, Spain, the United Kingdom, Italy, Germany, Saudi Arabia, and the United States. Morocco gains much foreign exchange from remittances by Moroccans working abroad and from the expenditures of the large number of tourists who visit the country each year.

H.

Transportation

Nearly all goods move in and out of Morocco by ship, and the country has extensive port facilities. Casablanca remains the most important port. Other ports include Agadir, Kenitra, Mohammedia, Safi, and Tangier. The country has a limited but efficient rail network, with 1,907 km (1,185 mi) of railroad track. The main lines connect Tangier to Fès, Casablanca, and Marrakech; from Fès tracks run east to Oujda and on to Algeria. Morocco 57,694 km (36,786 mi) of roads, 56 percent of which are hard-surfaced. Domestic and international air service is provided by Royal Air Maroc; several major foreign airlines also serve Morocco.

I.

Communications

Until the 1980s virtually every aspect of the press—radio, television, newspapers, and magazines—was tightly controlled by the Ministry of the Interior and Information. Radio and television were exclusively in the hands of the government, while the press practiced self-censorship. The situation has since become more open, and the press is freer to investigate social issues than it had been. However, attacks on Islam, the monarchy, or Moroccan territorial integrity—namely, Western Sahara—are offenses punishable by prison sentences.

Radio and television programs are broadcast in several languages in Morocco. The government-run Radio-Television Marocaine (RTM) broadcasts radio programs mainly in Arabic, although the major cities have programming in French. Berber shows also are produced. A commercial radio station, Médi-1, began operation in Tangier in the mid-1980s, and a private cable channel, 2M, began operation in 1989. Television broadcasts are in French and Arabic. The country has 23 daily newspapers and numerous periodicals.

J.

Labor

Morocco’s workforce in 2005 included 11.1 million persons. Some 47 percent of the labor force was engaged in agriculture, forestry, and fishing; another 32 percent worked in services; and 21 percent was employed in industry, including manufacturing, construction, and mining.