Introduction to Morocco
Generally, the economy of Morocco is determined through the forces of supply and demand. The liberal rule is followed where there is no influence of dominant forces. Some of the economic sectors are focused on having privatization trend. The importance of this place in the economy of Africa is really huge.
Even in the north of Africa, it is considered to be the most competitive economy. To improve the competitiveness of this market, certain steps should be taken. These steps will answer the dilemma of how Morocco can have a competitive economy.
The service sector in this economy is really strong covering up about half of the portion of GDP. Even the businesses in construction, manufacturing, and mining are really flourished and generate a lot of revenues. There are many avenues which can be explored y the outside world in this economy. A large amount of trade is carried out with France, and it is still the main source of transferring goods. This article will briefly explain steps that should be taken to give a boost to the economy.
Business scenario of Morocco
The economic scenario with respective to the perspective of environment and other aspects provides acceptance to most of the outside parties. The government has taken some steps in previous few years which played a role in the modernization and development of the economy. The main emphasis was kept on the enhancement of FDIs in the region which are foreign direct investment companies. Even when the Arab world goes through the problems in the political system, the economy of Morocco still remained in a sustainable condition. The main strength behind this fact is the privatization and investment policies in this region. The investors are getting the positive impact of the economy of Morocco in the international market, so it is becoming a favorable market in terms if investment opportunities.
Business and economy of Morocco
The economy and business world basically operates on the ground of a stable and efficient policy system. When democratic societies are prevailing in the system along with the separation of the power, more rational decisions take place. Morocco is strong according to this point of view. There is more decentralization in the economy and the institutions governing the laws are really structured. This thing makes it a modern state with the initiatives on the reforms on the capital market. The elections are held in the area on the regional and local levels which ensure the consensus of all the parties in the system. New concepts are also evolving in the business environment to ensure success over the longer run. Many employment generating activities are carried out in the region. Not only the employment but the enhancement in the managerial skills of the people working in the market is also performed. The initiatives include the holding off fifth Global Entrepreneurship Summit in this area.
How it can have competitive economy
Many steps are taken in the economy of Morocco to improve the market competitiveness. Close ties are built with the large economic groups. More indicators which can ensure the competitiveness of the economy is as follows.
Political Situation and its contribution to Morocco’s economy
The political system is stable in the area. Although the political problems have a huge influence on the economic development of any area but in the case of Morocco, there are certain plus points which are enforced by the government to have a better political system and to minimize its effect on the large level of the economy. The first step is the privatization of most governmentally owned businesses. This is the step which has different impacts when applied to different regions of the world. In some countries, this has a positive effect and economy is saved from many problems. Same is the case with Morocco. Because of many private institutions, the political system ahs minimal influence on the economy, also, the democratic system and more power in the hands of governing forces make the decision-making process easy and efficient.
How education can aid Morocco Economy
For the development of any economic system, skilled workforce is the main concern. Infrastructure can be developed, but unless or until there is a proper skill set to govern that system, there is no use of all these efforts. So, in the economy of Morocco, for the development of the education and skills of human capital, there is a need to have an efficient education system. The main issues which are the hindering in the success include the low quality and less contribution to achievements. There is a basic need of qualified and trained teaching staff which will introduce new ways of learning and make the youth capable of serving in the international and local market effectively. The enrollment rate in increased through the emergency program carried out as an initiative. The main role is played by the government and high-level decision makers in the region. This need is accessed by the problems occurring in the old projects. Also, with the implementation of the decentralized system, there is a need to have supervision on each level to successfully operate in the market. So, through the efficient learning system, the economy of Morocco can improve the economic achievements.
Currency value of Morocco
The currency used in the area of Morocco is Dirham. The currency fluctuation takes place in the area just like in other economies. The whole system works on the prediction and forecasting. By future expectation, most of the models generate the currency price. Many other indicators also include the labor market, GDP, trading level, business development, price level in the market, consumer behavior, taxation, inflation level in the past and many other such forces. In the market of Morocco, the price of Dirham is mainly predicted by the ARIMA model which is the autoregressive integrated moving average model. This analyzes the trend over the past period and by keeping in mind all the indicators, an expected value is generated.
Overview of the current economic situation
In the recent few years, the economic system of Morocco has seen strong development and growth. The problems which are faced by the global economy in many respects are eliminated through the development of the Moroccan economy. It has gone through constant growth even in the global crisis time period. This is all because of the policies and regulations in their system. The poverty levels in the economy are reducing to a minimal level. Quality education is also emphasized to make the workforce up to the mark of the market and improve the further system. The access to drinking water is also expanded which is the main issue of this area for many years. Also, roads are developed to have a good infrastructure to ensure the development in the rural and far-off areas. The main challenge faced here is the development of the human skills. The country suffers from the negative effects of high illiteracy rate as well as the gender disparity. The competitiveness is the feature which is strongly needed by the economy in modern times. Through diversification in the business operations and movement towards the international market is improving the growth level of the economy.
Future of economy of Morocco
The future growth of Morocco is mainly seen in respect of Africa. Even now the huge amount of trade is carried out with Africa which is a source of a major portion of revenues. Developmental steps are taken in the field of renewable energy sources and sustaining the current development level. The influence of large economies including Berber, European nations and Africa is strongly observed here. The main strength of Morocco is service sector with more than half of the revenue generation. Tourism and industrial sectors are also strong candidates in the economy. Currently, the main focus of concern of this economy is the sustainability of the growth taking place here.
Macroeconomic factors play a key role in the development and sustainability of the economic system, so they are ensured by taking certain measures. The main advantage possessed by this place is that it is the central hub for the whole Africa. Mainly, the banking sector mainly depends on this area. So, people consider it a good opportunity for success in the investment opportunities in the longer run. The market is reliable and trusted by most international investors.
In the previous years when other economies faced slow down in the market activities, the only Morocco sustained through that time. The financial reports were really encouraging, and it improved the business arena in this locality.
The risk management on the opportunities is done in a calculated way to avoid any managerial conflicts. Many projects such as renewable sources and financial initiatives are taken by considering future aspects of growth and to address the question of how Morocco can have a competitive economy. The Africa continent will have the major power of Morocco in its economic strength. So, in the future, there are endless trades as well as investment opportunities because of the stability of the political system.