Part 577

Flag description: red with a green pentacle (five-pointed, linear star) known as Solomon's seal in the center of the flag; green is the traditional color of Islam

Economy

Economy - overview: Morocco faces the typical problems of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and keeping inflation within manageable bounds. Since the early 1980s the government has pursued an economic program toward these objectives with the support of the IMF, the World Bank, and the Paris Club of creditors. The dirham is now fully convertible for current account transactions; reforms of the financial sector have been implemented; and 43 state enterprises have been privatized. Drought conditions in three of the last four years have depressed activity in the key agricultural sector, holding down exports and contributing to a 7.5% contraction in real GDP in 1995. Favorable rainfall in 1996 nurtured a record wheat crop and contributed to the 9% overall growth. Servicing the large external debt, preparing the economy for freer trade with the European Union, and finding jobs for Morocco's youthful population remain long-term problems.

GDP: purchasing power parity - $97.6 billion (1996 est.)

GDP - real growth rate: 9% (1996 est.)

GDP - per capita: purchasing power parity - $3,260 (1996 est.)

GDP - composition by sector: agriculture: 21% industry: 30% services: 49% (1994)

Inflation rate - consumer price index: 5% (1996 est.)

Labor force: total: 7.4 million by occupation: agriculture 50%, services 26%, industry 15%, other 9% (1985)

Unemployment rate: 20% (1995 est.)

Budget: revenues: $10.4 billion expenditures: $10.75 billion, including capital expenditures of $NA (1996 est.)

Industries: phosphate rock mining and processing, food processing, leather goods, textiles, construction, tourism

Industrial production growth rate: 4.5% (1996 est.)

Electricity - capacity: 3.79 million kW (1994)

Electricity - production: 10.17 billion kWh (1994)

Electricity - consumption per capita: 385 kWh (1995 est.)

Agriculture - products: barley, wheat, citrus, wine, vegetables, olives; livestock

Exports: total value: $7.7 billion (f.o.b., 1996 est.) commodities : food and beverages 30%, semiprocessed goods 23%, consumer goods 21%, phosphates 17% (1995 est.) partners : EU 63%, Japan 7.7%, India 6.6%, US 3.4%, Libya 3.4% (1996 est.)

Imports: total value: $9.8 billion (c.i.f., 1996 est.) commodities: capital goods 24%, semiprocessed goods 22%, raw materials 16%, fuel and lubricants 16%, food and beverages 13%, consumer goods 9% (1995 est.) partners: EU 57%, US 6.6%, Saudi Arabia 5.3%, Brazil 2.8% (1996 est.)

Debt - external: $23.4 billion (1996 est.)

Economic aid: recipient: ODA, $297 million (1993) note : $2.8 billion debt canceled by Saudi Arabia (1991)

Currency: 1 Moroccan dirham (DH) = 100 centimes

Exchange rates: Moroccan dirhams (DH) per US$1 - 9.018 (January 1997), 8.716 (1996), 8.540 (1995), 9.203 (1994), 9.299 (1993), 8.538 (1992)

Fiscal year: July 1-June 30

@Morocco:Communications

Telephones: 270,100 (1987 est.)

Telephone system: domestic: good system composed of open-wire lines, cables, and microwave radio relay links; principal centers are Casablanca and Rabat; secondary centers are Fes, Marrakech, Oujda, Tangier, and Tetouan international : 5 submarine cables; satellite earth stations - 2 Intelsat (Atlantic Ocean) and 1 Arabsat; microwave radio relay to Gibraltar, Spain, and Western Sahara; coaxial cable and microwave radio relay to Algeria; participant in Medarabtel

Radio broadcast stations: AM 20, FM 7, shortwave 0