Benefitting from strong ties to both Europe and the Arab world, Morocco has the right ingredients for future growth: low inflation, political stability, an industrial base and a favourable climate. With the outlook improving for Morocco’s trade partners and the lower price of oil – of which the country is a net importer – most observers expect growth to be even stronger in 2015, with estimates ranging from 4.4% to 5.0%.
Classified as a lower-middle-income country by the World Bank, the Moroccan economy is more than 50% made up of services, followed by 26% for industry and 15% for agriculture. Over the past three years, however, growth has been increasingly led by high value-added industrial sectors – especially in the automotive and aeronautics segments – and export growth has begun to outpace that of imports. The recent fall in oil prices and cuts in energy subsidies have similarly helped reduce the fiscal deficit, boosting liquidity and exchange reserves, and allowing the government to focus on investments in long-term development, such as export-oriented industry, infrastructure and renewable energy.
Comment from Paulius Kuncinas, Oxford Business Group Managing Editor for Asia's, on the Ringgit can be read on the New Strait Times website..
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