Main Sectors of Industry

Given the richness of Morocco's soil, the economy is dominated by the agricultural sector, which employs one-third of the workforce and contributes 12% of GDP (World Bank, latest data available). Barley, wheat, citrus fruits, grapes, vegetables, argan, olives, livestock and wine are the country's main crops. In recent years, the government has focused on the sector through its "Green Morocco Plan" and the Agricultural Development Fund. The country’s cereal production is highly variable, with local dams providing irrigation for only 15% of the agricultural land and rainfed agricultural production accounting for 85% of the aggregate output (FAO). According to preliminary data by the Ministry for Agriculture, the agricultural sector’s value-added decreased by 14% year-on-year during the 2021/22 crop year. The production of the main cereals (common wheat, durum wheat and barley) for the 2021/2022 crop year was estimated at 32 million quintals, down 69% from the previous year's record production, also due to the drought experienced by the country: at the end of April 2022, a rainfall level of 188mm was recorded, which is 42% lower than the average for the last 30 years (327 mm) and 35% lower than the previous year (289 mm).

Industry contributes 26.1% of the GDP and employs 23% of the workforce. The main sectors are textiles, leather goods, food processing, oil refining, and electronic assembly. However, new sectors have been booming: chemistry, automotive parts, computers, electronics and the aerospace industry. The automotive industry, in particular, has been growing in the last decade, with double-digit annual growth in terms of job creation and exports (becoming the country’s main exporting sector and Africa’s main automotive hub). Overall, the manufacturing sector is estimated to account for 15% of GDP. The emergence of new industries should allow the country to reduce its dependence on the agricultural sector. Morocco’s industrial sector is the largest beneficiary of foreign direct investment. The country has around 75% of the world's estimated reserves of phosphates, and the mineral sector accounts for almost 30% of exports (Oxford Business Group). Mining accounts for 10% of GDP, of which 90% derives from phosphates.

The services sector accounts for slightly above half of GDP (51.6%) and gives employment to 44% of the workforce. It is spearheaded by real estate and tourism, which has been very dynamic in recent years (accounting for around 11% of GDP and hitting a record of nearly 13 million arrivals in 2019). Although tertiary activities recorded a downward trend following the outbreak of the COVID-19 pandemic, with a particularly weak tourism performance, improvements were achieved in 2022 when tourist arrivals reached 84% of the pre-pandemic level and the value tourist receipts in foreign currency stood at MAD 81.7 billion at the end of November 2022 (data Ministry of Tourism). Finally, the Moroccan banking sector is dominated by locally owned banks, which account for more than 80% of industry assets (U.S. Department of Commerce).

Source: World Bank - Latest available data.

Political Outline

Current Political Leaders

King: MOHAMED VI (since 30 July 1999) - hereditary
Prime Minister: Aziz AKHANNOUCH (since 7 October 2021)

Next Election Dates

House of Representatives: 30 September 2026
House of Councillors: 31 October 2027

Current Political Context

King Mohammed VI – who has been ruling the country since 1999 - appointed a new government comprising a coalition of liberal and conservative parties, led by Aziz Akhannouch, after the victory of his National Rally of Independents (RNI) party in the general elections that were held in September 2021, which revealed the collapse of the Islamist Justice and Development Party (PJD) that had led the government over the previous two legislative terms (from 125 seats in the assembly to only 13 seats out of 395).
A new coalition government was thus formed by the liberal RNI and Authenticity and Modernity (PAM) parties together with the conservative Istiqlal. The three parties together enjoy a comfortable majority, holding 270 seats compared to the 198 needed to pass legislation, with a shared common platform focusing on economic and social reforms. The coalition government published its three-year budget plans as part of the 2023 budget, focusing on employment creation measures and an extension of social programmes while also seeking a reduction of the deficit.
The dispute with the Polisario Front, which is seeking independence for Western Sahara, remains one of Morocco's main political challenges.

Main Political Parties

Multi-party system, consisting of numerous parties. Parties work with each other to form coalition governments.

- National Rally of Independents (RNI): centrist, relatively inclined towards social liberalism. Was the leading party in the last elections
- Authenticity and Modernity Party (PAM): modernist and reform-oriented, formed by an advisor to the King and former Interior Minister
- "Istiqlal" Independence Party (PI): conservative nationalist
- Socialist Union of Popular Forces (USFP): left-wing socialist
- People's Movement (MP): centrist, dominated by Berber (Tamazight) speakers, but without a distinct Berber agenda
- Constitutional Union (UC): economically liberal, conservative on societal matters
- Party of Progress and Socialism (PPS): socialist, formerly communist
- Justice and Development Party (PJD): moderate Islamist, heads the ruling coalition

Executive Power

The executive power is shared between the government and the King. The Prime Minister is promoted to head of government and as such presides over the Governing Council, but the Council of Ministers continues to be chaired by the King. The Government Council consists of all the ministers, deputy ministers and other Secretaries of State. It discusses public and sectoral policies, the commitment of the government's responsibility to the House of Representatives, current issues related to human rights and public order, bills, decrees, draft regulatory decrees and the appointment of secretaries and central directors of the public administration, university presidents, deans and directors of schools and higher institutes. The Governing Council only has deliberative power concerning the general policy of the State, international conventions, and the finance bill. The Council of Ministers, where only the head of government and the ministers sit, is responsible for the strategic direction of the state policy, the revision of the Constitution, drafting organic laws, general guidance of the finance bill, amnesty, draft texts related to the military, the declaration of a state of siege, the declaration of war.

Legislative Power

The Parliament comprises the House of Representatives (395 deputies elected by universal direct suffrage for 5 years) and the House of Councillors (120 members elected by indirect universal suffrage for 6 years).
The Parliament votes the law; any bill must be successively examined by the two Houses. It moreover shares the initiative of the laws with the Prime Minister.