Morocco outperforms its North African counterparts in economic freedom

On Mar 2, 2023

Morocco earned a remarkable 97th place in the most recent American Heritage Foundation Index of Economic Freedom with a total score of 58.4 points. above the rankings of Tunisia, Egypt, and Algeria in North Africa, which are 132nd, 151st, and 168th, respectively.

Although Morocco’s score dropped by 0.8 points from the year before, it nevertheless managed to hold onto the top spot in the rankings for North Africa. In fact, the Kingdom has achieved a notable feat by placing seventh out of 14 nations in the Middle East and North Africa area.

According to the research, Morocco’s slow-but-steady development is due to its economic reforms, which have boosted private sector dynamism, raised its level of competitiveness, and broadened its base of production. These admirable efforts have moved Morocco closer to the world average.

Yet, the study has prompted worries about Morocco’s external issues and urged for significant institutional reforms. The research has specifically criticized the rigidity of Morocco’s labor market, particularly in unstructured industries that have not yet been integrated into the official economic system.

The research also analyses the sub-indicators that have affected Morocco’s rating, such as the rule of law index, which looks at standards for government integrity, judicial performance, and intellectual property protection. In these indexes, Morocco has received scores of 57.1, 32.8, and 38.7 points, respectively.

Morocco received scores of 65.3, 47.6, and 78.3 accordingly for the organizational efficiency sub-indicator, which measures the level of freedom of conducting business, freedom of action, and monetary freedom.

The openness of markets sub-indicator, which assesses the level of trade, investment, and financial freedom, has also been taken into account and Morocco received scores of 64.4, 65, and 70, respectively.

The report also evaluated the government size index, which is based on three criteria: tax burden, government expenditure, and financial health. Morocco received a score of 67.9 on the tax burden criterion, 72 on the government spending criterion, and 70 on the financial health criterion.

Moroccan Economy