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Morocco Analysis - Research Paper Example

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Analyzing the economic performance of a country involves a thorough inquiry into some of the crucial macroeconomic aggregates, such as the output, employment, saving, investment, money and finance, price, trade, etc. These aggregates pertaining to Morocco provides the rationale for its growth trajectory, historically…
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Morocco Analysis

Download file to see previous pages... Although the entire period between 1980 and 2000 is marked by periodic high and low swings, and a number of years of negative growth, the new millennium have brought in a positive outlook on its growth pattern. Figure 1 captures Morocco's violent growth waves in a succinct manner.
The year 1992 is a significant one in Morocco's demographic profile, as during that year half of its population lived in the countryside while the other half preferred the urban cities. However, what was predominantly a rural economy, three decades ago, has become an urban economy in recent years with 60:40 ratios in favor of cities. As can be observed from Figure 2, the rate of growth of migration from villages towards the cities has remained on an even path. This indicates a potential transition from the focus of primary agricultural production to industrial and service sector, in the coming years. In addition, as can be observed from Figure 3, net migration to other countries is also on the rise, from a little over 80000 persons in 1980 to over 330000 persons in 2004. Although the workers' remittances receipts remained more or less stable till the end of the previous decade, it exhibits a significant improvement during the first half of the new millennium, touching a net inflow of over US$ 4 billion during 2004. Morocco's population profile, as can be seen in Table 1, presents a sound improvement with a considerable decline in its birth, death, fertility and infant mortality rates, and a significant progress in its life expectancy and literacy rates.

Table 1: Trend in Morocco's Population Profile

Birth rate (per 1,000 people)
Death rate (per 1,000 people)
Fertility rate (births per woman)
Infant Mortality rate (per 1,000 live births)
Life expectancy at birth (years)
Literacy rate (% of people 15 & above)
Source: World Development Indicators, World Bank, Washington DC, 2006.

Figure 4: Trend in Morocco's unemployment as a percentage of total labor force:
The highest level of unemployment of about 23 per cent in 1995 remained a cause of concern for Morocco. Although unemployment as a percentage of the total labor force peaked once again during 1998, it has significantly declined since then reaching an all time low unemployment rate of around 11 percent during 2004.

Source: World Development Indicators, World Bank, Washington DC, 2006.
Together with the growing number of migrants towards the developed countries, there is a general optimism that the fast growing domestic manufacturing sector will absorb a significant number of unemployed persons, and consequently unemployment can be brought down to a manageable level in the near future.

Performance of Major Sectors:
Traditionally, agriculture played the central role in Moroccan economy, with a sustained growth and export performance of vegetables, citrus fruits, olives, wheat, barley, ...Download file to see next pagesRead More
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