Morocco’s economic freedom remains the highest in North Africa

The Heritage Foundation and The Wall Street Journal, Washington think tanks, have evaluated the economic freedom of 184 countries around the world each year since 1995, with a result called the Index of Economic Freedom (IEF). I am announcing. ).

Twelve elements are considered and fall into four major categories. The first factor is the rule of law (property rights, government integrity, judicial efficiency). The second is the size of the government (public spending, tax burden, financial stability), the third is the effectiveness of regulation (business, labor, financial freedom), and finally the opening of the market (trade, investment, finance). ..

Morocco Index of Economic Freedom Evolution Graph

In the latest release, the Kingdom’s Economic Freedom Score or IEF is 59.2 (-4.1). Formerly a talented student, he inherits a decent retrograde reference from a moderately free table (60/69, 9) to a slightly crippled category (50/59, 9).This makes the Moroccan economy 97When At IEF2022 or financial freedom.Morocco is 6thWhen 14 countries in the Middle East and North Africa (MENA) region or United Arab Emirates 33When An average of 70.2 (-6.7) world leads Israel44When World of average 68 (-5.9) and Qatar 44When Global 67.7 (-4.7).

Morocco’s overall score is above the MENA regional average, but below the global average. This is not the case for Algeria 45.8 (-3.9), the penultimate in this ranking. This is because in Iran 42.4 (-4.9) two are lifting the rear.Globally, the two collusion regimes are ranked 167thWhen And 170When Put it in the category of what is at the bottom of the class “Economic Repression” (0 / 49.9). The Kingdom was ranked 22nd due to the government’s response to the Dame Covid crisis.When Although ranked in terms of rigor, unfortunately its economy shrank 7.0% in 2020. The last five years have been a period of slow growth in the Moroccan economy. Unfortunately, the trend of gradual growth in economic freedom has collapsed over the last five years. Despite the financial freedom to put it in the best country, Morocco has been squeezed by other low scores related to social and economic issues, and since 2017 it has been 2.3 points overall in the IEF. Caused a loss and eventually downgraded it in one category.

The Heritage Foundation also handles Moroccan tax rates, the highest of which are personal income (38%) and businesses (31%). The total tax burden is equivalent to 27.8% of gross national income. Public spending over the last three years has reached 31.8% of gross domestic product (GDP), with an average budget deficit of 5.2% of GDP. Public debt represents 76.1% of GDP. However, Spain and France are each in reasonably free categories, so it is not only the Kingdom that Spain and France claim to be better41.When Average 68.2 (-1.7) and 52When At 65.2 (+0.2).

Returning to our region of North Africa, the Kingdom is ranked number one over Tunisia 54.2, 128When (-2.4), Egypt 152When, 49.1 (-6.9) and Algeria. In the latter case, economic growth slowed from 2017 to 2019 over the past five years, turned negative in 2020 and then recovered in 2021. The five-year trend of IEF expansion has collapsed. Reduced to lower property rights and financial health scores, Algeria has recorded an overall IEF loss of 0.7 points since 2017, falling to the bottom of the oppressed category. The economy shrank 6.0% in 2020. Sure, financial freedom is still strong, but the rule of law and the open market have many weaknesses that explain its bottom. Libya is not ranked in IEF2022 due to lack of reliable data.