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Favourable geographic position, close to the European market Strategy to move to high-end market and diversify industrial production Political stability and commitment to reforms Growing integration in African market WEAKNESSES Economy very dependent on performances in the agricultural sector Significant social and regional disparities.
Although falling, the poverty rate remains high Weak productivity and low competitiveness High unemployment rate and low Morocco an assessment of opportunities and participation in the labour market Political tensions with regional neighbours RISK ASSESSMENT Slight downturn in Growth in Morocco is correlated to that of the agricultural sector, which, although on a trend towards greater diversification, is still concentrated around cereal production, which is sensitive to weather conditions.
From a sector perspective, manufacturing industries continued their upturn begun inas has the services sector, buoyed by the recovery in tourism. Construction is still on a downward trend, evidence of the downturn in the residential property market since Ingrowth is likely to be more muted mainly because of the underlying effect associated with a slowdown in agricultural GDP growth.
However, the economy, excluding agriculture, is expected to continue perform well, buoyed by still resilient internal demand. Household consumption, although benefiting from moderate inflation, will be slightly penalised by falling agricultural incomes.
Investment is expected to remain firm, thanks to the ongoing pursuit of an expansionary public investment policy based on major projects, chiefly oriented towards port projects Tanger-Med 2, the Nador West-Med port complex and robust private investment encouraged by a policy of tax incentives exemption from registration fees for new businesses, lower tax rates on certain sectors.
Ongoing fiscal consolidation The fiscal consolidation begun in has led to a gradual stabilisation of the public deficit. Rising internal demand pushed up revenues from indirect taxes, particularly VAT, and from direct taxes. Spending remained contained, despite there being no government from November to April Inpublic spending is likely to edge upwards, boosted by an increased investment drive by public-sector companies, but also by higher operating expenditure associated with the rise in the number of civil servants in the national education system.
Financed primarily on the domestic market on preferential terms, the public debt is expected to remain stable inso debt interest payments look set to remain moderate. The deepening trade deficit puts pressure on the external accounts.
The combination of temporary factors like the increase in purchases of capital goods associated with infrastructure projects and the higher energy bill resulting from the rebound in the oil market has pushed imports higher.
However, this increase obscures the dynamism of agri-food, automotive, and aeronautical exports. Phosphate sales have also risen, driven by increased demand from emerging markets despite a fall in world prices. Infirm oil prices will continue to adversely affect the cost of imports, but to a lesser extent than inwhile the expected increase in investment will continue to sustain imports of capital goods.
In contrast tothe growth in remittances from expatriate workers driven by more favourable economic conditions in European countries, improved tourism income and higher FDIs will help consolidate foreign exchange reserves at a satisfactory level of just over five months of imports.
The reform, which is intended to result in greater flexibility for the dirham, has been postponed to a later date. Increased social risk Although he won the parliamentary elections, the leader of the JDP Justice and Development PartyAbdelilah Benkiran, failed to capitalise on his victory in the polls by building a coalition able to form a government.
After 5 months of impasse, a new prime minister, also from within the ranks of the JDP was appointed by King Mohammed VI to replace him.
Among the challenges the new government will face is the uprising affecting the landlocked regions in northern Morocco. The Hirak movement is campaigning for greater social justice and action to address the regional disparities penalising the Rif region. The police response was not the only response by the Moroccan authorities.
In OctoberKing Mohamed VI announced the sacking of several ministers and secretaries of state. Morocco is strengthening its economic and political presence on Africa by becoming a key player in the region after its reintegration into the African Union on the 30th Januaryas well as its accession to ECOWAS.
Payment Cheques are still commonly used as instrument of payment and also constitute efficient debt recognition titles: Bills of exchange also constitute an attractive means of payment, because they are a source of short-term financing by means of discounting, installment, or transfer.
Promissory notes are used to record the financial details of personal debts, business debts and real estate transactions. They are legally binding contracts that can be used in a court of law if the debtor defaults. A promissory note acts as solid evidence of an agreed payment, and subsequently debt in case of dispute.
Nevertheless, bank transfers are becoming the most popular means of payment for both domestic and international transactions.
Debt collection Amicable phase Debt collection must begin with an attempt to reach an amicable settlement. Creditors attempt to contact their debtors through different means telephone calls, written reminders such as formal letters, emails or extrajudicial notifications, etc.¾ What opportunities may exist in Morocco for an innovative, synergistic, cross-sectoral, youth-oriented program that will address the needs of youth at risk of social, political and economic disaffection?
the Morocco Cross Sectoral Youth Assessment Team was to assess which tools, needed to be in. Established in , the AMIDEAST/UAE field office provides testing, professional development training, English language training, scholarship program services and solutions throughout the seven Emirates that comprise the United Arab Emirates.
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