Rabat – a new world bank report has drawn attention to a relevant trend in the Middle East and North Africa (Mena): Since 2000, the Pro Hap -BIP growth in the region has remained behind that of the comparable economies.
The report attributes a large part of this stagnation to the underperformance of the private sector.
It explains that companies in the region face considerable challenges. The informal economy is dominant, productivity is low and there is a limited ability to adapt to economic shocks. These problems create an obstacle to persistent growth and economic resistance.
The World Bank’s report shows that sales growth per employee in MENA has dropped an average of 8%, which is far below the growth that can be observed in countries with lower funds (0.4%), countries with upper funds (0.4%) and countries with high incomes (2.4%). This gap illuminates a missed opportunity for growth in the region.
The report focuses on Morocco and points to the availability of detailed data, which has made a thorough analysis of the country’s productivity trends possible.
The results show that even the most productive companies in Morocco Battle Expand your market share. However, there are signs of improvement, especially in the more efficient use of production factors, which has contributed to increasing labor productivity.
In this report by the World Bank, two key factors are an essential obstacles to productivity in the region: the persistent separation between the formal and informal sectors and the exclusion of women from the workforce.
The informal sector makes up between 10% and 30% of total production and absorbs 40% to 80% of employment. This imbalance notes the need for urgent attention.
Amazing 83%of companies work informally in Morocco, a number that is significantly higher than in neighboring countries such as Lebanon (40%) and Jordan (50%).
Despite the potential advantages of formalization, this situation invites a further examination of the factors that make companies remain in the informal sector.
