Morocco ranks first among North African countries in the 2025 Economic Freedom Index, with a global rank of 86 and a score of 60.3. The country has improved by 3.5 points from the previous year, indicating a moderately free economy. Key areas include regulatory strength and open markets; however, challenges in labor market efficiency and business licensing persist.
Morocco has achieved the highest rank among North African countries in the 2025 Economic Freedom Index, according to the Index of Economic Freedom. Globally, it ranks 86th with a score of 60.3, placing 7th out of 14 countries in the MENA region, ahead of Kuwait and behind Saudi Arabia. The country improved its score by 3.5 points from the previous year, indicating a moderately free economy.
The report, published by the Heritage Institute, evaluates various factors that contribute to the overall score. Morocco has shown strength in regulatory frameworks, with business freedom rated at 68.9 and monetary freedom at 74.7, both exceeding the global average; however, labor freedom is rated at 48.5, which falls below the average.
Significant scores for open markets components have been reported, including a trade freedom rating of 67.2 and ratings of 75 for both investment and financial freedom. The report highlights a trade-weighted average tariff rate of 13.9%, ensuring equal treatment for both foreign and domestic investors under Moroccan law.
Furthermore, Morocco’s competitive financial sector continues to develop, providing diverse financing options, while the stock exchange does not restrict foreign participation. The advancements in economic freedom are credited to ongoing reforms that spur private-sector growth, enhance competitiveness, and diversify the market’s productive capabilities.
The report emphasizes Morocco’s monetary stability, marked by manageable inflation rates, but does note necessary reforms to address certain challenges. While the process of establishing private enterprises has been streamlined, licensing remains costly, and labor market rigidities persist, hampering job growth and marginalizing the informal labor sector.
The Index of Economic Freedom assesses 184 countries based on policies and conditions between July 1, 2023, and June 30, 2024, across 12 indicators under four pillars: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets. Each indicator is scored from 0 to 100, contributing to the final score that categorizes countries into five classifications.
In North Africa, Mauritania is ranked 119th (Mostly Unfree), Egypt 145th (Mostly Unfree), Tunisia 149th (Economically Repressed), and Algeria at 160th (Economically Repressed). Globally, top positions are held by Singapore, Switzerland, Ireland, Taiwan, and Luxembourg, respectively.
Morocco’s rise to the top position among North African countries in the 2025 Economic Freedom Index reflects significant improvements in economic policy and regulatory practices. Despite the progress marked by higher scores in various components, challenges remain, particularly in labor market flexibility and licensing costs. Continuous reforms are essential for sustaining Morocco’s economic growth and enhancing its global competitiveness.
Original Source: www.moroccoworldnews.com
