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Background information

Morocco is strategically located along the Strait of Gibraltar with a population size of around 33 million people. The geographic proximity to Europe, along with relative low labor costs, helped the country to develop towards a market-orientated economy. Throughout the last years, Morocco invested in its industrial infrastructure and transportation system in order to improve its competitiveness on the African continent. Main economic sectors are agriculture, tourism, aerospace and automotive. Morocco is overall a net importer.

The landscape consists mostly of mountains and fertile coastal plains. Around two-thirds of the land is used for agricultural purposes, mainly permanent pasture. Main crops include barley, wheat, and citrus fruits; next to livestock and wine. One of Morocco’s key sectors in terms of labor is agriculture, employing almost two-fifths of the labor force. Despite the high output in a variety of agricultural products, Morocco is a net importer of cereals as a staple crop, since around one third of the demand needs to be imported.

In spite of Morocco's good economic performance, the country accounts for high poverty, unemployment, and illiteracy rates among adults. Mostly, rural areas are lagging behind. This results in a HDI (2014) of 0.628, which is lower than in its neighboring countries. Moreover, the GHI (2015) indicates that around 4.4% of the population is undernourished. As part of a government action, subsidies on some food products next to butane gas are available.