Rabat- Morocco is the most economically free country in North Africa, according to the Heritage Foundation’s 2024 Index of Economic Freedom. The annual report, now in its 30th edition, evaluates the economic freedom of 184 countries worldwide based on 12 quantitative factors grouped into four broad categories: rule of law, government size, regulatory efficiency, and open markets.
Morocco achieved an overall economic freedom score of 56.8 out of 100, placing it 101st position globally and 9th out of 14 countries in the Middle East and North Africa (MENA) region.
Despite a 1.6-point decrease from the previous year, Morocco maintains its position as the regional leader in North Africa, outperforming neighbors Algeria (164th), Tunisia (150th), Egypt (146th), and Mauritania (110th). Libya was not included in the ranking due to a lack of reliable data.
“Morocco’s gradual but notable progress is due partly to economic reforms that encourage private-sector dynamism,” the Heritage Foundation report states. “Competitiveness has improved, and the productive base has diversified. Some challenges require deeper institutional reforms. Procedures for setting up and registering private enterprises are now more streamlined.”
In terms of the rule of law, Morocco scored 57.6 for property rights, 32.9 for judicial effectiveness, and 33.9 for government integrity. The report notes that while Morocco’s overall rule of law score is weak, the country’s property rights score is above the world average.
Regarding regulatory efficiency, Morocco received scores of 68.5 for business freedom, 48.6 for labor freedom, and 71.1 for monetary freedom. The Heritage Foundation points out that although Morocco’s business freedom score is above the world average, “labor market rigidity still discourages dynamic job growth, and much of the labor force remains marginalized in the informal sector.” However, the report also highlights that “monetary stability has been maintained with relatively modest inflation.”
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In the open markets category, Morocco scored 67.4 for trade freedom, 65.0 for investment freedom, and 70.0 for financial freedom. “The trade-weighted average tariff rate is 11.3 percent. Foreign and domestic investors are generally treated equally under the law,” the report states. “The competitive financial sector continues to grow and offers a range of financing options. The stock exchange does not restrict foreign participation.”
On the fiscal front, the Heritage Foundation considers Morocco’s top individual income tax rate of 38% and the top corporate tax rate of 32% to be high. “The tax burden equals 27.1 percent of GDP. Three-year government spending and budget balance averages are, respectively, 32.6 percent and –6.1 percent of GDP. Public debt amounts to 71.5 percent of GDP,” the report notes.
Globally, Singapore remains the world’s most economically free country, followed closely by Switzerland, Ireland, Taiwan, and Luxembourg in the top five. The United Arab Emirates (22nd), Israel (26th), and Qatar (28th) lead the MENA region, while Mauritius (19th), Botswana (36th), and Cape Verde (57th) top the African rankings. North Korea, Cuba, Venezuela, Sudan, and Zimbabwe continue to be the least economically free countries in the world.
The Heritage Foundation’s 2024 Index of Economic Freedom underscores the vital role that economic freedom plays in fostering human progress and prosperity. As the report states, “Greater economic freedom, because it is one of the most effective means by which to eliminate poverty, has a major positive impact on overall levels of poverty.”
