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Spain vs. Morocco

Economy

SpainMorocco
Economy - overview

After a prolonged recession that began in 2008 in the wake of the global financial crisis, Spain marked the fourth full year of positive economic growth in 2017, with economic activity surpassing its pre-crisis peak, largely because of increased private consumption. The financial crisis of 2008 broke 16 consecutive years of economic growth for Spain, leading to an economic contraction that lasted until late 2013. In that year, the government successfully shored up its struggling banking sector - heavily exposed to the collapse of Spain's real estate boom - with the help of an EU-funded restructuring and recapitalization program.

Until 2014, contraction in bank lending, fiscal austerity, and high unemployment constrained domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 16.4% in 2017. High unemployment strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Spain's budget deficit peaked at 11.4% of GDP in 2010, but Spain gradually reduced the deficit to about 3.3% of GDP in 2017. Public debt has increased substantially - from 60.1% of GDP in 2010 to nearly 96.7% in 2017.

Strong export growth helped bring Spain's current account into surplus in 2013 for the first time since 1986 and sustain Spain's economic growth. Increasing labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have improved Spain's export competitiveness and generated foreign investor interest in the economy, restoring FDI flows.

In 2017, the Spanish Government's minority status constrained its ability to implement controversial labor, pension, health care, tax, and education reforms. The European Commission expects the government to meet its 2017 budget deficit target and anticipates that expected economic growth in 2018 will help the government meet its deficit target. Spain's borrowing costs are dramatically lower since their peak in mid-2012, and increased economic activity has generated a modest level of inflation, at 2% in 2017.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.

In the 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the US in 2006 and an Advanced Status agreement with the EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighed on the country's budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.

Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. Key economic challenges for Morocco include reforming the education system and the judiciary.

GDP (purchasing power parity)$1,925,576,000,000 (2019 est.)

$1,888,743,000,000 (2018 est.)

$1,843,934,000,000 (2017 est.)

note: data are in 2010 dollars
$279.295 billion (2019 est.)

$272.531 billion (2018 est.)

$264.212 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.95% (2019 est.)

2.43% (2018 est.)

2.97% (2017 est.)
2.5% (2019 est.)

2.96% (2018 est.)

3.98% (2017 est.)
GDP - per capita (PPP)$40,903 (2019 est.)

$40,360 (2018 est.)

$39,575 (2017 est.)

note: data are in 2010 dollars
$7,515 (2019 est.)

$7,438 (2018 est.)

$7,314 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 2.6% (2017 est.)

industry: 23.2% (2017 est.)

services: 74.2% (2017 est.)
agriculture: 14% (2017 est.)

industry: 29.5% (2017 est.)

services: 56.5% (2017 est.)
Population below poverty line20.7% (2018 est.)4.8% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 2.5%

highest 10%: 24% (2011)
lowest 10%: 2.7%

highest 10%: 33.2% (2007)
Inflation rate (consumer prices)0.7% (2019 est.)

1.6% (2018 est.)

1.9% (2017 est.)
0.2% (2019 est.)

2% (2018 est.)

0.7% (2017 est.)
Labor force19.057 million (2020 est.)10.399 million (2020 est.)
Labor force - by occupationagriculture: 4.2%

industry: 24%

services: 71.7% (2009)
agriculture: 39.1%

industry: 20.3%

services: 40.5% (2014 est.)
Unemployment rate14.13% (2019 est.)

15.25% (2018 est.)
9.23% (2019 est.)

9.65% (2018 est.)
Distribution of family income - Gini index34.7 (2017 est.)

32 (2005)
39.5 (2013 est.)

39.5 (1999 est.)
Budgetrevenues: 498.1 billion (2017 est.)

expenditures: 539 billion (2017 est.)
revenues: 22.81 billion (2017 est.)

expenditures: 26.75 billion (2017 est.)
Industriestextiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, footwear, pharmaceuticals, medical equipmentautomotive parts, phosphate mining and processing, aerospace, food processing, leather goods, textiles, construction, energy, tourism
Industrial production growth rate4% (2017 est.)2.8% (2017 est.)
Agriculture - productsbarley, milk, wheat, olives, grapes, tomatoes, pork, maize, oranges, sugar beetwheat, sugar beet, milk, potatoes, olives, tangerines/mandarins, tomatoes, oranges, barley, onions
Exports$533.771 billion (2019 est.)

$521.855 billion (2018 est.)

$510.327 billion (2017 est.)
$48.565 billion (2019 est.)

$46.608 billion (2018 est.)

$44.033 billion (2017 est.)
Exports - commoditiescars and vehicle parts, refined petroleum, packaged medicines, delivery trucks, clothing and apparel (2019)cars, insulated wiring, fertilizers, phosphoric acid, clothing and apparel (2019)
Exports - partnersFrance 15%, Germany 11%, Portugal 8%, Italy 8%, United Kingdom 7%, United States 5% (2019)Spain 23%, France 19% (2019)
Imports$463.145 billion (2019 est.)

$459.742 billion (2018 est.)

$441.197 billion (2017 est.)
$64.12 billion (2019 est.)

$61.535 billion (2018 est.)

$57.257 billion (2017 est.)
Imports - commoditiescrude petroleum, cars and vehicle parts, packaged medicines, natural gas, refined petroleum (2019)refined petroleum, cars and vehicle parts, natural gas, coal, low-voltage protection equipment (2019)
Imports - partnersGermany 13%, France 11%, China 8%, Italy 7% (2019)Spain 19%, France 11%, China 9%, United States 7%, Germany 5%, Turkey 5%, Italy 5% (2019)
Debt - external$2,338,853,000,000 (2019 est.)

$2,366,534,000,000 (2018 est.)
$52.957 billion (2019 est.)

$51.851 billion (2018 est.)
Exchange rateseuros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.7525 (2014 est.)

0.7634 (2013 est.)
Moroccan dirhams (MAD) per US dollar -

9.0065 (2020 est.)

9.657 (2019 est.)

9.48825 (2018 est.)

9.7351 (2014 est.)

8.3798 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt98.4% of GDP (2017 est.)

99% of GDP (2016 est.)
65.1% of GDP (2017 est.)

64.9% of GDP (2016 est.)
Reserves of foreign exchange and gold$69.41 billion (31 December 2017 est.)

$63.14 billion (31 December 2016 est.)
$26.27 billion (31 December 2017 est.)

$25.37 billion (31 December 2016 est.)
Current Account Balance$29.603 billion (2019 est.)

$27.206 billion (2018 est.)
-$5.075 billion (2019 est.)

-$6.758 billion (2018 est.)
GDP (official exchange rate)$1,393,351,000,000 (2019 est.)$118.858 billion (2019 est.)
Credit ratingsFitch rating: A- (2018)

Moody's rating: Baa1 (2018)

Standard & Poors rating: A (2019)
Fitch rating: BB+ (2020)

Moody's rating: Ba1 (1999)

Standard & Poors rating: BBB- (2010)
Ease of Doing Business Index scoresOverall score: 77.9 (2020)

Starting a Business score: 86.9 (2020)

Trading score: 100 (2020)

Enforcement score: 70.9 (2020)
Overall score: 73.4 (2020)

Starting a Business score: 93 (2020)

Trading score: 85.6 (2020)

Enforcement score: 63.7 (2020)
Taxes and other revenues37.9% (of GDP) (2017 est.)20.9% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-3.1% (of GDP) (2017 est.)-3.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 32.5%

male: 30.9%

female: 34.5% (2019 est.)
total: 22.2%

male: 22%

female: 22.8% (2016 est.)

note: does not include data from the former Western Sahara
GDP - composition, by end usehousehold consumption: 57.7% (2017 est.)

government consumption: 18.5% (2017 est.)

investment in fixed capital: 20.6% (2017 est.)

investment in inventories: 0.6% (2017 est.)

exports of goods and services: 34.1% (2017 est.)

imports of goods and services: -31.4% (2017 est.)
household consumption: 58% (2017 est.)

government consumption: 18.9% (2017 est.)

investment in fixed capital: 28.4% (2017 est.)

investment in inventories: 4.2% (2017 est.)

exports of goods and services: 37.1% (2017 est.)

imports of goods and services: -46.6% (2017 est.)
Gross national saving22.9% of GDP (2019 est.)

22.4% of GDP (2018 est.)

22.2% of GDP (2017 est.)
27.8% of GDP (2019 est.)

27.8% of GDP (2018 est.)

29.1% of GDP (2017 est.)

Source: CIA Factbook