Morocco has been ranked highest among North African countries in the 2025 Economic Freedom Index, achieving 86th place globally with a score of 60.3. This marks a 3.5-point improvement from the previous year, indicating a moderately free economy. The report highlights positive scores in business and monetary freedom, although issues in labor market rigidity and licensing costs remain. Ongoing reforms are crucial for continued economic advancement and investor confidence.
Morocco has achieved the highest ranking among North African countries in the 2025 Economic Freedom Index, according to the Index of Economic Freedom. Globally, Morocco secured the 86th position with a score of 60.3, ranking 7th out of 14 countries in the Middle East and North Africa (MENA) region, preceding Kuwait but following Saudi Arabia. This marks an improvement of 3.5 points from the previous year, categorizing Morocco’s economy as “moderately free.”
The Heritage Institute, which published this report, evaluated multiple factors to derive the overall score. Morocco has demonstrated a well-established regulatory environment, securing a business freedom score of 68.9 and a monetary freedom score of 74.7, surpassing the world average; however, its labor freedom score of 48.5 is below the global standard. The open markets components yielded favorable results, with scores of 67.2 for trade freedom, and 75 for both investment freedom and financial freedom.
Additionally, the report indicated that Morocco’s trade-weighted average tariff rate stands at 13.9 percent, ensuring near-equal treatment for both foreign and domestic investors under Moroccan law. The competitive financial sector in Morocco is expanding, providing diverse financing options without imposing limits on foreign participation in the stock exchange. These advancements in economic freedom are credited to ongoing reforms which promote increased private-sector dynamism, enhance competitiveness, and diversify the productive base.
Despite these positive developments, the report identified challenges in the form of necessary institutional reforms. Although the procedures for establishing and registering private enterprises have been streamlined, the high costs associated with licensing remain a concern. Furthermore, the report expressed apprehension regarding labor market rigidity which impedes significant job growth, and the marginalization of a considerable portion of the workforce in the informal sector.
The Index of Economic Freedom assesses the economic policies of 184 countries from July 1, 2023, to June 30, 2024, based on 12 indicators in four pillars: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets. Each indicator is evaluated on a 0 to 100 scale, culminating in the country’s final score. The classification includes five categories, from “Free” to “Economically Repressed.” Within North Africa, Mauritania, Egypt, Tunisia, and Algeria ranked significantly lower, categorized as Mostly Unfree or Economically Repressed, while Singapore, Switzerland, Ireland, Taiwan, and Luxembourg led globally.
Morocco emerges as a leader in North Africa for economic freedom as reflected in the 2025 Index, showcasing substantial improvements and a moderately free economy. The country’s successful regulatory environment and robust financial sector contribute to this positive status, although certain institutional reforms are still needed. Challenges in labor market dynamics and high licensing costs highlight the areas requiring attention to bolster future economic growth further. Overall, this report illustrates Morocco’s ongoing commitment to enhancing its economic framework and attractiveness for investment.
Original Source: www.moroccoworldnews.com
