The Heritage Foundation’s Index of Economic Freedom report indicates that Morocco’s score is the leader in North Africa, having increased by 3.5 points, compared to the previous year.
According to the 2025 edition of the Index of Economic Freedom published by the Heritage Foundation, Morocco is positioned as the leader in economic freedom in North Africa.
Globally, the country ranks 86th with a score of 60.3, while in the Middle East and North Africa (MENA) region, it ranks 7th out of 14 countries, ahead of Kuwait but behind Saudi Arabia. The Moroccan economy is thus qualified as “moderately free”.
The index is based on several criteria, including the regulatory environment, market freedom and macroeconomic stability. Morocco scores well on business freedom (68.9) and monetary freedom (74.7), with scores above the world average. However, labor freedom (48.5) remains below international standards, reflecting labor market rigidities.
Regarding open markets, the Moroccan economy has positive indicators: trade freedom is rated at 67.2, investment freedom at 75, and financial freedom at 75. The report indicates that the weighted
average tariff rate for trade is 13.9%, and that investors, both domestic and foreign, benefit from fair treatment under the Moroccan legal framework.
The dynamic and competitive financial sector continues to offer a wide range of financing. The Moroccan stock exchange, for its part, does not limit the participation of foreign investors, thus contributing to an environment favourable to capital flows.
This progress is the result of the reforms undertaken by Morocco to stimulate the private sector, improve competitiveness, and diversify its economy. The country’s monetary stability is also highlighted, with inflation remaining at moderate levels.
However, the report highlights several structural challenges that require deeper institutional reforms. For example, although procedures for starting and registering businesses have been simplified, licensing requirements remain costly. In addition, labor market rigidity continues to hamper dynamic employment expansion, contributing to the precariousness of the informal sector.
The Index of Economic Freedom assesses the economic policies and conditions of 184 countries for the period from 1 July 2023 to 30 June 2024. It is based on twelve indicators grouped into four broad pillars: the rule of law (property rights, government integrity, judicial efficiency), the size of government (government spending, tax burden, fiscal health), regulatory efficiency (business freedom, labour freedom, monetary freedom), and open markets (trade freedom,
investment freedom, financial freedom). Each criterion is rated on a scale of 0 to 100, and the average of these indicators determines each country’s final score.
The study classifies countries into five categories: “free” (80 to 100 points), “mostly free” (70 to 79.9 points), “moderately free” (60 to 69.9 points), “mostly not free” (50 to 59.9 points), and “economically repressed” (0 to 49.9 points).
In the context of North Africa, Mauritania ranks 119th (category “mostly not free”), followed by Egypt (145th, “mostly not free”), Tunisia (149th, “economically repressed”), and Algeria (160th,
“economically repressed”).
MK/te/Sf/fss/as/APA