Economy in Morocco

        In order to talk about the economy in Morocco, we must check different points. To see if an economy is either good or bad we take into consideration four major things that are the rate of unemployment, the rate of inflation, the rate of growth and the external balance of trade balance. This process is called the magic square of Kaldor.  It is called Kaldor in reference to the builder of this theory, the economist Nicholas Kaldor. To say that the health of an economy in a country is good we must have a rate of growth at least greater than 0, a financial surplus concerning the external trade balance, a small rate of unemployment , and a rate of inflation between 0 and 2.5%. The major force of Morocco in economy is Phosphates; Morocco is ranked first in the world regarding Phosphates production.

(Economywatch.com 30/03/2010).

       According to oxford dictionary of economics, unemployment is the inability to obtain a job when one is willing and able to work. In Morocco, the rate of unemployment in 2011 is about 9, 1%.There is a phenomenon in Morocco that explains this big rate. In fact, Directors of companies prefer hire people from their family rather than young graduates that have better competences. According to the same dictionary, Inflation means a persistent tendency for prices and money wages to increase. In Morocco the rate of inflation is about 2.5%.The rate of growth is an economic indicator that measures the growth of a country between two years. The rate of growth in Morocco in 2011 is about 5%.The rate of inflation and growth show that Morocco is developing economically. Morocco gives a lot of importance to growth as Mr Mezouar, the minister of economy in Morocco said in a conference:’ our aim and emphasis in the draft budget for 2011 are to spur growth and growth and more growth’. (Africagoodnews.com 22/10/2010). Trade balance is the external exchange of a country with other countries. In Morocco, it is a chronic problem since Morocco exports only products with low value added. In 2011, the deficit is more than 16, 8 Billion MAD.

Sources: statistics From: l’opinion.ma (04/02/2011), tradingeconomics.com