Morocco’s economic freedom ranking improved from 86th in 2018 to 75th in 2019, remaining above the global and regional averages.
By Carolina McCabe
Rabat – The Heritage Foundation’s World Index of Economic Freedom for 2019 scored Morocco’s level of economic freedom at 62.9, classifying the country as “moderately free.” With a one point increase between 2018 and 2019, Morocco moved up 11 places in the worldwide ranking.
The research demonstrates Morocco’s progress in economic freedom, while also highlighting remaining challenges.
Morocco has shown growth in the fields of fiscal health, property rights, and judicial
effectiveness. The research attributes Morocco’s successes to “low labor costs and proximity to Europe” which have allowed Morocco “to build a diversified and market-oriented economy.”
The study demonstrates a six point increase in fiscal health over the one year period as well as a three point increase in property rights and judicial effectiveness. In areas of financial and investment freedom, the values did not change.
The research found Morocco to decline in the areas of government integrity, labor
freedom, and trade freedom. The low scores in labor freedom and government integrity fell below regional and global averages and were attributed to inflexible labor laws and unequally implemented rule of law.
With regards to government integrity, Morocco’s points decreased between 2018 to 2019 from 41.2 to 39.1. This ranking leaves Morocco in the ‘repressed’ category for government integrity. For labor freedom, Morocco was given a score of 33.1 compared to its score of 36.0 in 2018. The regional average for labor freedom is 59.4.
Morocco’s overall level of economic freedom has slowly been increasing since 2014.
Overall, the Heritage Foundation ranked Hong Kong to have the most economic freedom, followed by Singapore and New Zealand. France ranked at 71st, in the same category as Morocco. The most repressed countries were North Korea, Venezuela, and Cuba.
The Heritage Foundation’s Economic Index has been tracking economic freedom for 25 years to demonstrate changes in economic freedom, prosperity, and opportunity. According to the foundation, “In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.”
The data used to calculate the 2019 index values was collected over the second half of 2017 and the first half of 2018. The information was accurate as of June 30, 2018.