Evidently, Morocco has been subject to relatively high unemployment since it’s economic development. It’s GDP growth has been slow and mostly stagnant as established in the first part of the project. It also appears that Morocco has a much more stagnate economy that does not see business cycles to the same degree as the U.S. The unemployment rate and growth rate remain around the same. This could be because Morocco is a developing nation without a lot of economic ties to the U.S., but rather has made an effort in involving itself in the European economy. Morocco see’s really short periods of expansion and recession but they are ultimately insignificant when it comes to the lack of economic development. More evidence that Morocco’s economy is …show more content…
However, after 2001 you can see stable low inflation rates until 2008. The inflation rate has been fluctuating since 2008 but is now on an upward slope. In Morocco, the current interest rate on commercial loans is around %6. The current rate of inflation is around 1.6% so the real interest rate is equal to around 4.4%. This is a relatively high interest rate in comparison with the United States. It is twice as high. However, it’s low when compared to interest rates on credit cards which are around 16%. The real interest rate is still under 5% which is impressive for a developing nation. However, 4.4% is a really a really high real interest rate according to U.S. standards.The current deficit makes up -4.065 % of the GDP. There was a peak in the government deficit to GDP ratio in 2007 before the recession but since the recession of 2008 there has been a rapid decrease. The deficit has not recovered and is still in a period of recession. New government fiscal policies have worked to jumpstart the economy at the expense of the national deficit. However, in 2014, Moody’s officially upgraded Morocco’s fiscal outlook to “stable” with a Ba1 rating. The reason for this upgrade is the implementation of a government energy subsidy which promotes higher value-added export industries such as offshore oil drilling and and the exports of automotive parts. Currently, 1 U.S. dollar is equal to 10.12 Moroccan Dirhams. The exchange rate has slowly depreciated in respect to the dollar, but is returning to stability. The value of the Moroccan Dirham has rapidly dropped in value over the past ten years. The country is hopeful that new industries such as the use of offshore oil reserves will raise the value of the dirham. Poland and Morocco have both seen a relatively stable economy. But Poland is much more stable in terms of inflation rate. Netherland’s economy has close ties to the
Also to adjust pending contracts and initiate new pensions which have to take into account the effect of inflation. Less well-off people and elderly are more vulnerable to inflation as it affects their investment income and social benefits like pensions. Canada’s annual rate of inflation, which had reached a high of 12.5 per cent in 1981, has averaged 2 per cent since 1991. For example, if the cost of the consumer basket rises, say, from $100 in 2007 to $102 in 2008, the average annual rate of inflation for 2008 is 2 per cent. People generally believed that if the inflation rate was higher than normal in the past so they will expect it to be higher in the future than anticipated whereas some takes in consideration the past along with current economic indicators, such as the current inflation rate and current economic policies, to anticipate its future performance. Over the long term, the earnings margins of corporations are inflationary and so are the wage gains of workers. According to rational expectations, attempts to reduce unemployment will only result in higher
The above diagram shows the inflation rate of Euroarea. During recession, the inflation rate of Euroarea did not fell a lot. This shows that ECB policy was successful to kept the inflation rate around the normal rate that is 2%.
Clark, Todd and Christian Garciga. "Recent Inflation Trends." Economic Trends (07482922), 14 Jan. 2016, pp. 5-11. EBSCOhost, cco.idm.oclc.org/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=112325646&site=ehost-live.
Morocco Transcript. Hopes on the Horizon: Africa in the 1990's. 1995-2005. PBS Online. 10 Oct. 2004. <http://www.pbs.org/hopes/morocco/transcript.html>.
All but four countries in the world has external debt (“Country Comparison: Debt External”). Having a debt is almost as common as having a mortgage. Since its establishment, The United States has always been in debt (“Historical Debt Outstanding – Annual”). The US national debt has had five sharp increases previously in its history. The reasons include civil car and the two World W...
Richard J. Braxton is a Ph.D., Director, at Innovation Center –Index Shared Services. The aim of his article is to understand the problem of youth unemployment in the Gulf Cooperation Council region and how best the government can critically address this issue. He gave several options that can be clear solution to the problem. His emphasized that the GCC countries need to adopt effective training and development programs to provide the unemployed youth with the knowledge, skills, and abilities in order for them to compete for job vacancies.. The article also gave many facts elaborating more on the issue, so that his audience gets more interested and engaged in the topic. The articles outlines so many important steps to be considered by the government, and...
Walker, Bruce. "Euro Likely to Keep Losing Value." The New American. The New American Magazine, 7 July 2010. Web. 23 May 2011. .
Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased.
...tober 2004. < http://news.bbc.co.uk/1/hi/world/africa/1599003.stm .> Pelham, Nick. "Morocco continues liberal moves." 22 October 1999. BBC News Homepage. October 2004. < http://news.bbc.co.uk/1/hi/world/africa/482053.stm .>
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want to work and can work according to the current pay they can get for a job they chose to work as. There are four major types of unemployment: frictional, structural, cyclical and seasonal unemployment.
An Analysis of Gross Domestic Product (GDP). The current state of the economy in the United States has been slow in recent months. While the economy is not currently in recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much.
Exchange Rates: It is the value of money of a country prevailing in other countries. Due to high inflation, the exchange rate gets fluctuated which in turn affects trades (import and export), transaction across border and also value of money gets affected.
Daily in the USA about 38 million banknotes of various face value for total amount about 541 million dollars are issued (Facts about USA money).Dollars involve deep consequences both for the USA, and for other countries. Increase of its course relatively reduces the volume of export revenue in dollars, quite often involves more considerable, than change of an exchange rate, falling of the world prices, especially on raw materials. On the contrary, decrease in a dollar rate serves as the powerful tool promoting growth of the American export and a pushing off of competitors of the USA in foreign markets. At the same time import to the USA owing to effect of a rise in prices restrains. Thus, for the USA changes in the exchange rate of dollar anyway bring benefits and advantages.Reduction of leading positions of the USA in world economy is assisted by the international role of dollar which remains the main reserve and settlement means in world monetary system. Foreign currency reserves of the central banks of other countries for 61% consist of dollars, nearly 2/3 calculations in world trade are carried out in dollars; the dollar serves as a measure of value of many important goods (for example: oil) in the world market; in dollars 3/4 international bank crediting is made (Aleksandr Popov). Changes in the exchange rate of dollar involve deep consequences both for the USA, and for other countries. Increase of its course relatively reduces the volume of export revenue in dollars, quite often involves more considerable, than change of an exchange rate, falling of the world prices, especially on raw materials. On the contrary, decrease in a dollar rate serves as the powerful tool promoting growth of the American export and a pushing off...