Moroccan Economy Shows Robust Growth Amidst Global Uncertainties
Attijariwafa Bank led the market activity, mobilizing 62 million dirhams and seeing a significant 3.57% increase to 725 dirhams.Morocco Telecom followed, with a 2.54% rise to 121 dirhams.
Emerging stocks also garnered attention, with Vicenna, newly listed a week ago, trading at 345 dirhams, marking a 46% surge since its introduction.
This positive performance aligns with a favorable economic climate for the kingdom, despite global uncertainties. The High Commission for planning (HCP) reported that Morocco’s economic growth reached 4.8% in the first quarter of 2025, a notable increase from 3% a year prior. This growth was primarily driven by a 4.6% expansion in non-agricultural activities, bolstered by major projects associated with CAN 2025 and the 2030 World Cup.
Sectoral indicators reinforce this upward trend. Cement sales, a key indicator for the construction sector, rose by 9.8% by the end of June, reaching 6.8 million tonnes, even with a slight slowdown during Eid El-adha. The automotive sector demonstrated remarkable growth, with sales increasing by 36.6% to 88,728 units in the first half of the year.
Agriculture also contributed positively, with a 4.5% growth in its added value during the first quarter, despite varied climatic conditions. This vital sector continues to represent between 11% and 15% of the GDP and nearly 40% of national employment. Further data from the second quarter will provide a clearer picture of the sustainability of this recovery.
on the external front, the exchange office indicated a widening trade deficit, reaching -133 billion dirhams by the end of May. This was largely due to increased imports of equipment and building materials. However, this deficit is partially offset by a growing surplus in services, driven by a rebound in tourism and the strength of business services. Consequently, the current deficit remains contained at approximately 2% of GDP.
External financial flows remain robust. Remittances from Moroccans residing abroad continue to support the economy, alongside foreign direct investments attracted by the kingdom’s stability and economic outlook.
Regarding prices, inflation has continued its downward trend. After averaging 2% in the first quarter, it stood at 0.7% in April and 0.4% in May, primarily due to a decrease in food prices. In this context, Bank Al-Maghrib decided to maintain its key interest rate at 2.25%, awaiting greater clarity on geopolitical tensions and the international economic environment.
Public finances are being managed effectively. The central bank projects a budget deficit of 3.9% of GDP for 2025.
Evergreen Insights
Background: Morocco’s economy is demonstrating resilience and growth, driven by strategic investments in infrastructure and key sectors like tourism and automotive manufacturing. The country’s proactive approach to economic development, coupled with its stable political environment, continues to attract foreign investment.
Context: The current economic performance is occurring against a backdrop of global economic uncertainties, including inflation and geopolitical tensions. Morocco’s ability to maintain growth and control inflation highlights its sound economic management and diversified economic base.
historical Trends: Over the past decade, Morocco has focused on diversifying its economy beyond customary sectors, investing heavily in infrastructure, renewable energy, and advanced manufacturing. This has led to consistent GDP growth and an increasing contribution from non-agricultural sectors, positioning the country as a regional economic hub.
Frequently Asked Questions
Q: What is driving the economic growth in Morocco?
A: Economic growth is primarily driven by non-agricultural activities, boosted by major projects related to CAN 2025 and the 2030 World Cup, alongside strong performance in the automotive and construction sectors.
Q: How is inflation being managed in Morocco?
A: Inflation is being managed through a combination of monetary policy,with Bank Al-Maghrib maintaining its key rate,and a decrease in food prices.
Q: What is the impact of external factors on Morocco’s economy?
A: While the trade deficit has widened due to
