Capital Flight from North African Countries - Political Economy ...

FIGURE 2: CAPITAL FLIGHT FROM EGYPT FROM 1970- 2010,
3-YEAR MOVING AVERAGE ( CONSTANT 2010 $, MILLION)
Morocco
Morocco has experienced net unrecorded capital outflows consistently since 1983 (see
Figure 3). Over the 1970-2010 period, the country lost $2.1 billion (in 2010 dollars)
annually through capital flight, equivalent to 5 percent of GDP and 21.5 percent of
gross capital formation. There was a steep rise in capital flight in the mid-1980s and
it has been on the rise again since 2005. Trade misinvoicing represents a serious
problem in Morocco, too. Export underinvoicing amounted to over $86 billion in the
period, while misinvoicing of imports resulted in net smuggling of $46 billion.
FIGURE 3: CAPITAL FLIGHT FROM MOROCCO FROM 1970- 2010,
3-YEAR MOVING AVERAGE ( CONSTANT 2010 $, MILLION)
CAPITAL FLIGHT FROM NORTH AFRICAN COUNTRIES • PAGE 8