Morocco Leads North Africa in 2025 Economic Freedom Index

Morocco has topped the North African countries in the 2025 Economic Freedom Index, registering a global rank of 86 with a score of 60.3. The country’s economic framework is characterized as moderately free, reflecting improvements due to ongoing reforms, although challenges in labor market rigidity and costly licensing still need to be addressed.

Morocco has recently achieved the top rank among North African nations in the 2025 Economic Freedom Index, according to the Index of Economic Freedom. The country attained an overall global ranking of 86 with a score of 60.3, placing it seventh out of fourteen countries in the Middle East and North Africa (MENA) region, ahead of Kuwait and just behind Saudi Arabia. Notably, Morocco’s score reflects a significant improvement of 3.5 points from the previous year.

According to the report published by the Heritage Institute, Morocco’s economy is categorized as “moderately free”. The evaluation of the country’s economic freedom considers various factors, with Morocco demonstrating a well-institutionalized regulatory environment. Its business freedom score stands at 68.9, while monetary freedom is notably higher at 74.7, although labor freedom remains less favorable at 48.5.

Additionally, open market components have received commendable ratings—trade freedom scored 67.2, while both investment and financial freedom achieved scores of 75. The report highlights that the trade-weighted average tariff rate is 13.9%, ensuring that investors enjoy equal legal treatment, whether domestic or foreign. Morocco also boasts a growing financial sector with diverse financing options and no restrictions on foreign participation in the stock exchange.

This advancement in economic freedom is attributed to ongoing reforms aimed at increasing private-sector dynamism, enhancing both competitiveness and the diversification of the productive base. Moreover, Morocco has maintained monetary stability with low inflation rates. However, the report warns that several challenges necessitate further institutional reforms, indicating that while the procedures for establishing enterprises are simplified, licensing remains costly.

Furthermore, the report raises concerns regarding labor market rigidity, which hampers job growth, and notes the marginalization of a significant portion of the workforce within the informal sector. The Index of Economic Freedom evaluates 184 countries, focusing on the period from July 1, 2023, to June 30, 2024, utilizing 12 indicators organized into four main pillars: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets.

Countries are classified into five categories based on their scores, with Morocco currently in the “Moderately Free” category. In contrast, other North African nations, such as Mauritania, Egypt, Tunisia, and Algeria, are classified as Mostly Unfree or Economically Repressed. On a global scale, the highest rankings were secured by Singapore, Switzerland, Ireland, Taiwan, and Luxembourg.

In summary, Morocco’s impressive ranking in the 2025 Economic Freedom Index illustrates its commitment to enhancing economic freedom through various reforms. While the country continues to enjoy a moderately free economy, there remain obstacles that demand deeper institutional reforms, especially in labor market flexibility and business licensing. Overall, Morocco’s advancement is a positive indicator of its economic trajectory within the region.

Original Source: www.moroccoworldnews.com