This profile takes stock of the trade performance and structure of Morocco since 1995. In addition to aggregate trends in trade and foreign direct investment, a broad range of trade indicators are calculated specially for this profile using highly detailed product level data, making it a novel set of trade indicators for Morocco and the Arab region.
The analysis reveals that Morocco has shown strong performance in merchandise trade and attracting foreign direct investment since 2003, despite a brief interruption in the aftermath of the global financial crisis. Moroccan services trade, however, has exhibited a somewhat distinct pattern. It had surged until 2007, when the global financial crisis hit, and has recorded ups and downs since then. FDI flows, though sustained higher levels compared to pre-crisis levels, have been rather volatile. Traditional destinations for Morocco’s exports have mainly been EU countries but sub-Saharan countries have been gaining ground and have become important trade partners, much more so than their share in world trade suggests. Turkey and EU countries hold relatively favorable prospects for Moroccan exports, which are increasingly diversified and sophisticated products.