Analyzing Morocco’s Economic System

What is the economic system of Morocco? The economy of Morocco is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.

Morocco’s economy is diversified, with agriculture, mining, manufacturing, and tourism being major sectors. It has a growing automotive industry and is a major exporter of phosphates.

In Morocco, the economy is composed of a private sector, consisting of individuals and businesses that make autonomous decisions based on self-interest, and a public sector, where the state determines the production and distribution of certain goods and services. No country is purely capitalist or purely communist.

What do the freedom indexes tell about the economic system of Morocco?

Now, to determine if a country is mostly a market economy or a planned economy, it is useful to examine some economic indexes. For instance, according to the 2026 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Morocco is ranked 83rd globally and 7th in the Middle East and North Africa, with a score of 61.8 out of 100, qualifying it as a moderately free economy — an improvement of 1.5 points from the prior year and the highest-ranked economy in North Africa.

In a similar way, the 2026 Freedom House index evaluates the state of political rights and civil liberties globally. Generally, market economies tend to align more with democracy and freedom, while command economies tend to be characterized by greater state control and fewer democratic and civil liberty protections. Morocco gets a score of 37/100 (As of 2026), which qualifies it as Partly Free.

Morocco is considered to have a government that does not control what people do, and people can make their own economic decisions, but it is only considered an electoral democracy, lacking full liberal democratic protections.

The Link Between Public Sector Employment and the Economic System of Morocco

An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Morocco, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is 8.7% (2021 data, latest available). In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State.

Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer is the economy to being a command economy.

What do the biggest companies in Morocco say about the country’s economic system?

The biggest company in Morocco should also be looked at, as well as whether it is a state-owned or private company. In this case, OCP Group is the largest company in Morocco by revenue, a state-controlled phosphate and fertilizer producer. As of 2024, OCP Group reported revenues of approximately $9.76 billion (MAD 96.99 billion), making it one of the largest companies in Africa. The company is majority-owned by the Moroccan state.

Morocco’s private sector industries include agriculture, tourism, and textiles, while the public sector industries include energy, transportation, and telecommunications.

The historical factors that have influenced the economic system of Morocco

The current mixed economy system of Morocco is the result of the country’s colonial history, its economic liberalization policies, and its efforts to diversify its economy.

Colonialism left Morocco with a legacy of unequal economic development, while economic liberalization policies have opened the country to foreign investment and increased competition.

Additionally, Morocco has sought to diversify its economy by investing in sectors such as tourism, agriculture, and manufacturing. These factors have all contributed to the current mixed economy system of Morocco.

Sources

• List of countries by the public sector size
• ILOSTAT – Employment Data
• 2026 Index of Economic Freedom – Morocco
• Freedom in the World 2026 – Morocco
• List of Largest Companies in Africa by Revenue
• OCP Group

Last updated: June 20, 2026