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Agadir – Morocco’s economic environment is rated as “moderately free” by the Heritage Foundation in its 2026 Index of Economic Freedom ratings.
In the US think tank’s latest ratings, Morocco scored 61.8 out of 100 and was rated the 83 best economy in the world out of the total number of economies rated, increasing its rating by 1.5 points compared to the last year.
Regionally, Morocco was rated the seventh best economy out of the total of 14 economies rated in the Middle East and North Africa region. It is also rated higher than the global average and the regional average.
The report points out that the improvement in Morocco’s position is attributed to the ongoing efforts to strengthen private sector activities. These moves have heightened competitiveness and gradually diversified the country’s production base.
The administrative requirements involved in setting up businesses have improved, indicating progress in improving the business environment in the country. However, challenges still exist in the country.
The report explained that the licensing requirements are still relatively costly, and structural challenges, such as the labor market, still affect the creation of more dynamic employment opportunities. Additionally, the country still experiences high levels of informality among its labor force.
Index of economic freedom
The economic freedom index is an annual measure that assesses the policy environments of countries across the globe based on the level of support or hindrance they provide to economic activities.
The index broadly measures the level at which individuals or businesses are allowed to make economic decisions without the interference of the government.
It points out the role of the government in helping or impeding economic activities and the level of economic activities taking place in the market.
Analysts also look at the internal environment of the country, such as the rights of an individual, the regulation of the market, and the monetary policies, as well as the country’s openness to the global economic environment.
The four pillars of economic freedom
The assessment of the countries, including Morocco, is divided into four broad pillars, with each pillar comprising three specific aspects.
The first pillar is the rule of law. It focuses on the strength of legal institutions, the effectiveness of the justice system, and the integrity of the government, which are crucial in creating trust and promoting investment.
Government size examines the level of taxation, public spending, and the financial position of the government, which affects the level of government involvement in economic activities.
The regulatory efficiency pillar measures the ease of doing business, the flexibility of the labor market, and the stability of the money supply.
The last pillar is market openness which evaluates the country’s policies on trade, investment, as well as the development of the financial system.
