Morocco Achieves Top Rank in North Africa for Economic Freedom in 2025

Morocco ranks highest among North African countries in the 2025 Economic Freedom Index, achieving the 86th global position with a score of 60.3, indicating a moderately free economy. The report highlights improvements in regulatory efficiency and open markets, although challenges in labor market rigidity and high licensing costs remain.

Morocco has achieved the highest rank among North African nations in the 2025 Economic Freedom Index, as per the Index of Economic Freedom. Globally, it stands at the 86th position with a score of 60.3, placing seventh out of 14 in the MENA region, surpassing Kuwait and following Saudi Arabia. Notably, Morocco’s score increased by 3.5 points compared to the previous year and is classified as “moderately free.”

The Heritage Institute’s report evaluates several factors contributing to Morocco’s overall score, highlighting its well-established regulatory environment. Significant scores include business freedom (68.9) and monetary freedom (74.7), both exceeding the global average, while labor freedom (48.5) lags behind it. Furthermore, Morocco recorded strong open market indicators with trade freedom at 67.2, and both investment and financial freedom at 75.

The report states that the average tariff rate stands at 13.9%. Additionally, both foreign and domestic investors enjoy equal treatment under Moroccan law, which fosters a competitive financial sector that continues to expand and offers diverse financing options. There are no restrictions on foreign participation in the stock exchange.

The improvement in economic freedom is attributed to Morocco’s reforms aimed at boosting private sector activity, which enhances competitiveness and diversifies the productive base. Moreover, the country has maintained monetary stability, characterized by modest inflation rates. However, the report points out that further institutional reforms are required to address lingering challenges.

Specific challenges include high licensing costs despite streamlined procedures for establishing and registering private enterprises, as well as rigidity in the labor market that dampens job growth. A significant portion of the workforce remains marginalized within the informal sector.

The Index of Economic Freedom assesses economic policies and conditions across 184 countries for the period extending from July 1, 2023, to June 30, 2024. It employs 12 indicators organized into four pillars: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets. Each indicator is scored on a scale from 0 to 100; the composite score determines the country’s final rating.

Countries are classified into five categories based on their scores: Free (80-100), Mostly Free (70-79.9), Moderately Free (60-69.9), Mostly Unfree (50-59.9), and Economically Repressed (0-49.9). In North Africa, Mauritania ranks 119th, Egypt 145th, Tunisia 149th, and Algeria 160th. Globally, the top five countries include Singapore, Switzerland, Ireland, Taiwan, and Luxembourg, with scores ranging from 84.1 to 79.5.

In conclusion, Morocco’s commendable progress in the 2025 Economic Freedom Index demonstrates its leading position in North Africa and highlights its efforts to enhance economic freedom. While the nation shows strengths in regulatory and financial aspects, challenges persist in labor market flexibility and institutional reforms. Continued focus on these areas will be essential for sustaining economic growth and improving the overall business environment.

Original Source: www.moroccoworldnews.com