Morocco’s economy has long been characterised by lack of growth and its dependence on agriculture, which employs nearly half the workforce and contributes 12%-17% of GDP. Financial Times
However officials and businessmen say the economy is at last expanding and becoming more diversified, led by real estate and tourism.
Last year, real GDP growth was 8.1% and unemployment, which was above 20% in the 1990s, fell below 10% for the first time, says Fathallah Oualalou, the finance minister.
'Morocco is currently a big building site,' he said. 'It is becoming less and less dependent on agriculture. Of course it concerns more than 40% of the population, but its weight with respect to growth is diminishing due to the birth of new engines of growth.'
The real estate boom is driven by tax incentives for companies to build low-cost housing. More than 100,000 such houses are being built annually, Oualalou said, and the government provides interest subsidies and loan guarantees for buyers.
Tourism is being promoted by Plan Azur, which aims to attract 10 million visitors by 2010 and raise hotel capacity by 160,000 beds. Foreign direct investment has reached $3bn (£1.5bn) as French, Belgian, Spanish and Gulf groups put money into resorts and hotels.
Samir Benmakhlouf, who returned 15 months ago to set up a subsidiary of US real estate firm Century 21, said: 'The government has understood that it needs to get out of the way and let the private sector do what it is supposed to do.'
Businessmen have estimated that 80% of investment, which totalled $6bn (€4.5bn, £3bn) last year, is going into property.