The paper "Business Exam Paper" is an impressive example of a Business assignment. From the World Bank datasheet, Morocco experienced average annual GDP growth of 5.1% between 2011 and 2015. As an emerging economy, therefore, this implies low economic growth hence portending a medium economic risk for the country. . Having experienced a general growth in its GDP for the last two and a half decades from 2.7% in 1991 to 5.1% in 2015, Morocco may be said to be exhibiting genuine economic growth progressively, though at a low pace.
With an equally progressively increasing GDP per capita from 1.2% in 1991 to 4.1% between 2011 and 2015, the low economic growth may be said to be uniformly distributed across Morocco’ s general population. With this type of low growth, therefore, Morocco is deemed to be experiencing such undesirable GDP conditions as poor exploitation of resources, poor competitiveness, and low creation of wealth by its citizens. Inflation According to World Bank statistics about Morocco, the country’ s Implicit GDP Deflator for the latest available year (2011) stood at 1.5%. This implies an inflation rate of 1.5% which consequently shows that there is price stability in Morocco.
Such price stability demonstrates that the country’ s economic risk is potentially low and, therefore, quite attractive for would-be investors in the Moroccan economy. Current Account Deficit (CAD) Morocco’ s Current Account Deficit (CAD) stood at -6,808 US$ millions in 2011 according to World Bank statistics. Its Current account balance/GDP percentage, though, stands at -6.8% as of 2011. This shows a high economic risk for would-be investors in the Moroccan economy as it is far much lower than the average recommended ratio of -2.0%. Part II Morocco is indeed prime for Foreign Direct Investment (FDI), especially in the agricultural sector.
This is because the literacy levels are relatively low (56%) hence implying cheap unskilled labor for such menial tasks in agriculture. It