he process of political opening in Morocco has been headed by King Mohammed VI, who ascended to the throne in July 1999 following the death of his father, Hassan II. Breakthrough legislation includes a new family code granting women more power. The last parliamentary elections took place in September 2007.

King Mohammed VI has come to be known as a modernizer, fast-tracking political and economic reforms. He has vowed to fight poverty and corruption, while creating a resilient economy. So far, the authorities have liberalized transportation, energy and telecommunications. Traditional sectors like agriculture are being diversified.

Morocco’s currency, the dirham, is pegged against a basket of currencies including the euro. In the medium term, Bank Al-Maghrib (the central bank) is considering a free exchange system. The Moroccan economy has been labeled by the IMF as strong, with favorable effects on poverty and unemployment.

About 15 percent of the urban labor force is unemployed and 15 percent of the population lives under the poverty line. Other challenges include shoring up private sector confidence. A deepening of reforms in the financial sector will ensure that savings in Morocco are turned into efficient investments. Integration with world economies by way of free trade agreements (FTAs) will act as an engine of growth.

The medium-term prospects are good. The non-agricultural sector will grow 5 percent on average over the next five years, according to the IMF. Tourism and workers’ remittances will continue to benefit the country’s balance of payments. Regarding the nation’s GDP, tourism alone accounts for 10 percent and remittances for another 8 percent.

Source: International Monetary Fund