Economy (Morocco)
=================


     Overview:
         The economy had recovered moderately in 1990 because of: the resolution of a
         trade dispute with India over phosphoric acid sales, a rebound in textile
         sales to the EC, lower prices for food imports, a sharp increase in worker
         remittances, increased Arab donor aid, and generous debt rescheduling
         agreements. Economic performance in 1991 was mixed. A record harvest helped
         real GDP advance by 4.2%, although nonagricultural output grew by less than
         1%. Inflation accelerated slightly as easier financial policies triggered
         rapid credit and monetary growth. Despite recovery of domestic demand,
         import volume growth slowed while export volume was adversely affected by
         phosphate marketing difficulties. In January 1992, Morocco reached a new
         12-month standby arrangement for $129 million with the IMF. In February
         1992, the Paris Club rescheduled $1.4 billion of Morocco's commercial debt.
         This is thought to be Morocco's last rescheduling. By 1993 the Moroccan
         authorities hope to be in a position to meet all debt service obligations
         without additional rescheduling. Servicing this large debt, high
         unemployment, and Morocco's vulnerability to external economic forces remain
         severe long-term problems.
     GDP:
         exchange rate conversion - $27.3 billion, per capita $1,060; real growth
         rate 4.2% (1991)
     Inflation rate (consumer prices):
         8.1% (1991 )
     Unemployment rate:
         16% (1991)
     Budget:
         revenues $7.5 billion; expenditures $7.7 billion, including capital
         expenditures of $1.9 billion (1992)
     Exports:
         $4.1 billion (f.o.b., 1991)
       commodities:
         food and beverages 30%, semiprocessed goods 23%, consumer goods 21%,
         phosphates 17%
       partners:
         EC 58%, India 7%, Japan 5%, USSR 3%, US 2%
     Imports:
         $6.0 billion (f.o.b., 1991)
       commodities:
         capital goods 24%, semiprocessed goods 22%, raw materials 16%, fuel and
         lubricants 16%, food and beverages 13%, consumer goods 9%
       partners:
         EC 53%, US 11%, Canada 4%, Iraq 3%, USSR 3%, Japan 2%
     External debt:
         $20 billion (1991)
     Industrial production:
         growth rate 4% (1989 est.); accounts for an estimated 20% of GDP
     Electricity:
         2,270,000 kW capacity; 8,170 million kWh produced, 310 kWh per capita (1991)
     Industries:
         phosphate rock mining and processing, food processing, leather goods,
         textiles, construction, tourism
     Agriculture:
         50% of employment and 30% of export value; not self-sufficient in food;
         cereal farming and livestock raising predominate; barley, wheat, citrus
         fruit, wine, vegetables, olives; fishing catch of 491,000 metric tons in
         1987