The World Bank, in its latest report on economic growth in the Middle East and North Africa, has stated that since 2000, GDP per capita growth in the region has been consistently below the median level of comparable economies. The report attributes this weak growth to the underperformance of the private sector. Titled «The Private Sector as an Engine of Growth in the Middle East and North Africa», the report explains that businesses in the region face challenges such as the prevalence of the informal economy, low productivity, and limited capacity to adapt to economic shocks. The report also noted a significant decline in sales per worker growth, which decreased by an average of 8%. This performance was much worse compared to lower-middle-income countries (0.4%), upper-middle-income countries (0.4%), and high-income countries (2.4%). In the case of Morocco, the report highlighted that the availability of detailed historical data has allowed for a comprehensive analysis of productivity dynamics. It revealed that the most productive companies in Morocco fail to grow sufficiently to capture larger market shares. However, improvements in technical efficiency—more effective use of production factors—have contributed positively to labor productivity growth. The World Bank identified two key factors contributing to the region's weak productivity growth: the persistent divide between the formal and informal sectors, and the exclusion of women from the labor market. It noted that the informal sector accounts for between 10% and 30% of total output and absorbs between 40% and 80% of total employment. The report also pointed out that 83% of companies in Morocco operate within the informal sector, a notably high percentage compared to other countries in the region, such as Lebanon (40%) and Jordan (50%). This, according to the World Bank, underscores the need for a deeper understanding of the factors influencing these companies' decisions about the nature of their operations.
