Morocco’s Economic Diversification Falters: Drops From 47th to 57th in Global Ranking
Morocco’s Economic Diversification: A Concerning Slip in Global Rankings
Morocco’s ranking in the 2025 Global Economic Diversification Index (EDI) has taken a significant hit, falling from 47th in 2019 to 57th. This drop marks a return to its 2000 ranking, according to a report by the Mohammed Bin Rashid School of Government, raising concerns about the nation’s economic trajectory. Scoring 100.5 points, Morocco’s performance reflects a worrying trend of declining diversification compared to previous years. This begs the question: is Morocco losing its momentum in broadening its economic base?
The EDI, a comprehensive measure analyzing 23 years of data across 115 countries, highlights the critical need for robust economic diversification, particularly for nations heavily reliant on natural resources. This diversification is key for sustainable growth and adapting to global shifts, including the transition to a green economy and the ongoing digital revolution. Morocco’s slip in the rankings suggests a potential struggle in these areas.
Globally, the United States leads the index with 157.1 points, followed by China (146.2) and Germany (139.8), showcasing their success in creating diverse and resilient economies. These nations offer valuable lessons for countries like Morocco seeking to improve their economic standing. For example, Germany’s focus on advanced manufacturing and renewable energy has contributed significantly to its economic strength and diversification. Similarly, the US’s robust tech sector and diverse service industries have played a crucial role in its economic resilience.
Within the Arab world, the report highlights notable progress by countries like Saudi Arabia, the United Arab Emirates, and Qatar. These nations have made significant strides in diversifying their economies and reducing their dependence on oil revenue over the past decade. Saudi Arabia’s Vision 2030, for instance, is a ambitious plan to transform the kingdom’s economy by investing heavily in sectors like tourism, technology, and renewable energy. These examples demonstrate the potential for successful economic diversification in the region.
However, the report also acknowledges the lingering impact of the COVID-19 pandemic, which exacerbated existing economic disparities. Low-income countries, in particular, face challenges in returning to pre-pandemic levels of economic activity, especially given the need for substantial investments in digital infrastructure. This underscores the importance of international cooperation and targeted support to help these nations recover and build more resilient economies. The World Bank, for example, has launched several initiatives to support developing countries in their post-pandemic recovery and promote sustainable economic growth.
Economic diversification is not merely an abstract economic concept; it’s a vital strategy for enhancing economic resilience and mitigating geopolitical risks. By broadening its economic base, a country can better withstand external shocks and ensure long-term prosperity. Think of it like a balanced investment portfolio: diversifying your investments reduces your overall risk. Similarly, a diversified economy is less vulnerable to fluctuations in specific sectors or global market instability. Morocco’s declining ranking suggests a need for renewed focus on policies that promote diversification and foster sustainable economic growth. This could include investments in emerging sectors, support for small and medium-sized enterprises (SMEs), and initiatives to improve education and skills development. By learning from the successes of other nations and addressing the challenges posed by the global economic landscape, Morocco can regain its momentum and build a more resilient and prosperous future.
