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Economy

Morocco's economy grows by 3.8% in 2024 despite sector imbalances

Friday 06 June 2025 - 14:15

By: Dakir Madiha

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Morocco's economy expanded 3.8% in 2024, as reported by the country's statistics office, the High Commission of Planning (HCP). This growth marks a slight improvement from the 3.7% recorded in 2023 and reflects a slow yet fragile recovery driven primarily by strong domestic demand amidst persistent inflation.

While the growth is modest, it signals a degree of resilience. Economic activity continues to be fueled by local markets and households, though tighter prices and increasing financial pressures challenge the broader economic landscape.

Agriculture loses ground, industry catches up

Beneath the headline figure lies a more complex reality. Agriculture, traditionally a cornerstone of Morocco’s economy, experienced a sharp decline, with output in the primary sector shrinking by 4.5%. This downturn was led by a 4.8% decrease in agricultural production. The fisheries sector, which had contributed to growth in previous years, also faltered, slowing from nearly 7% to a mere 2.6%.

In contrast, non-agricultural sectors showed stronger performance, growing by 4.5% due to advancements in key industries. Extractive activities surged by 13%, while construction and public works increased by 5%. Manufacturing expanded by 3.3%, and essential services like electricity, gas, and water management saw a 2.6% rise in added value.

These results indicate that while Morocco's economic engine remains heavily dependent on its industrial centers and urban areas, the rural economy continues to confront structural challenges.

Services show mixed signs

The services sector, the largest segment of the national economy, faced a modest slowdown, with growth decreasing to 4.6% in 2024 from 5% the previous year. Some areas, such as accommodation and food services, experienced reduced momentum, slowing to 9.6%. The information and communication technology sector also saw a decrease in growth pace.

However, several sectors thrived. Financial services and insurance grew by 7.3%, while transport and storage increased by 7.4%. Trade, education, and healthcare also reported gains. The public sector, including administration and social protection, contributed an additional 4.1% to the national total.

This contrast highlights shifting dynamics in consumer behavior and investment trends. Although hospitality and tourism continue to attract demand, growth appears more fragmented than in the past.

Inflation exacting its toll

At current prices, GDP growth reached 7.9%, a decline from the 11% expansion in 2023. The data reveals a 4.1% rise in the general price level. Persistent inflation has eroded purchasing power, making financing more costly for both enterprises and households.

The country is precariously balanced. Growth is closely tied to domestic consumption, which in turn depends on stable prices and affordable incomes. The increase in nominal GDP, while positive, reflects inflationary pressures as much as it does genuine economic growth.

Morocco’s economic performance in 2024 offers cautious optimism. Industrial activity remains on the rise, and service sectors continue to show dynamism. Nevertheless, the weight of inflation, coupled with agricultural underperformance, necessitates a careful approach moving forward.

Recent statistics reaffirm the age-old adage that economies progress, but not without challenges. The current objective is to maintain momentum while addressing imbalances across sectors and regions.