The Moroccan economy has been characterized by macroeconomic stability, with generally low inflation and sustained, moderately high growth rates over the past several years. Recent governments have pursued reform, liberalization, and modernization aimed at stimulating growth and creating jobs. Morocco's primary economic challenge is to accelerate growth and sustain that improved performance in order to reduce high levels of unemployment and underemployment. While overall unemployment stands at 9.9% (2009 est.), this figure masks significantly higher urban unemployment, as high as 33% among urban youths.

While economic growth has historically been hampered by volatility in the rainfall-dependent agriculture sector, diversification has made the economy more resilient. In 2007, continued strong performance by non-agricultural sectors ensured a positive growth rate, even as agricultural production contracted by nearly 20%. Since that time, agriculture has recovered, with adequate rainfall, increasing 25% over a 2-year period. GDP growth fell slightly from 5.6 % in 2008 to 5.1 % in 2009. In 2010, GDP is expected to grow at a 4.5% rate.

Through a foreign exchange rate pegged to a basket of important currencies and well-managed monetary policy, Morocco has held inflation rates to industrial country levels over the past decade. Inflation fell from 3.9% in 2008 to 1% in 2009, mainly due to the fall of world and local food prices. Despite criticism among exporters that the dirham had become overvalued, the persistent merchandise trade deficit driven by the country’s need for imported energy has been offset by inflows including transfers from Moroccans resident abroad, tourism revenue, and foreign investment. Morocco’s current account deficit grew in 2008, but has since stabilized. Foreign exchange reserves remained adequate at over $28 billion, the equivalent of 6.8 months of imports, at the end of 2008. These reserves and active external debt management policies give Morocco ample capacity to service its debt. Current external debt stood at $17.3 billion at the end of 2008.

The government is continuing a series of structural reforms begun under its predecessors. Promising reforms have occurred in the financial sector. Privatizations have reduced the size of the public sector. Morocco has liberalized rules for oil and gas exploration and has granted concessions for public services in major cities. The tender process in Morocco is becoming increasingly transparent. Many believe, however, that the process of economic reform must be accelerated in order to reduce urban unemployment.

In January 2006, the bilateral Free Trade Agreement (FTA) between the United States and Morocco went into effect. The U.S.-Morocco FTA eliminated tariffs on 95% of bilateral trade in consumer and industrial products with all remaining tariffs to be eliminated within nine years. The negotiations produced a comprehensive agreement covering not only market access, but also intellectual property rights protection, transparency in government procurement, investment, services, and e-commerce. Other chapters spell out consultation and assistance mechanisms in the areas of labor and environmental protection. The FTA provides new trade and investment opportunities for both countries and has encouraged economic reforms and liberalization. Since its entry into force, bilateral trade between the two countries has increased 147%.

GDP (2008 est.): $88.88 billion.
GDP growth rate (2009 est.): 5%.
Per capita GDP (PPP, 2008 est.): $4,500.
Natural resources: Phosphates, fish, manganese, lead, silver, and copper.
Agriculture: Products--barley, citrus fruits, vegetables, olives, wine, livestock, and fishing.
Industry: Types--phosphate mining, manufacturing and handicrafts, construction and public works, energy.
Sector information as % GDP (2007): Agriculture 12.4%, industry 29%, services 58.5%.
Monetary unit: Moroccan dirham. Exchange rate per U.S. dollar - 7.7503 (2008 average).
Trade: Exports (2008)--$20.17 billion f.o.b.; Major partners (2008)--Spain 20.1%, France 11.2%, India 6.7%, Brazil 4.8%, Italy 4.7% and the U.S. 3.9%. Imports (2008)--$39.35 billion c.a.f. Major partners (2008)--France 15%, Spain 11.2%, Italy 6.7%, Saudi Arabia 6.7%, China 5.7%, United States 5.1%, and Russia 5%.
Budget (2009): Revenues--$26.16 billion; expenditures--$27.93 billion.
Budget deficit (2009 est.): 2.7 % of GDP.
Debt, external (2008): $17.3 billion.