-
07:30
-
07:00
-
21:51
-
21:27
-
21:08
-
20:57
-
17:50
-
17:20
-
16:50
Follow us on Facebook
Morocco’s agriculture growth drives economic recovery in early 2025
Morocco’s economy has shown solid recovery in the first half of 2025, bolstered by a 4.6% growth in agricultural output and significant progress across key industries. According to the Directorate of Studies and Financial Forecasts (DEPF) under the Ministry of Economy and Finance, this rebound reflects a combination of favorable weather conditions, increased domestic demand, and renewed investor confidence.
Agriculture’s resurgence aids recovery
The agricultural sector, employing nearly one-third of Morocco’s workforce, experienced a notable recovery after years of drought. Rainfall during the 2024–2025 crop season boosted cereal production to 43 million quintals, with positive impacts on pastures and livestock breeding. This resurgence supported broader rural economic growth.
Key crops such as citrus fruits, olives, and tomatoes maintained stable production and exports, underscoring the sector’s modernization under Morocco’s Green Generation strategy. The plan, targeting 2020–2030, emphasizes improved irrigation, digital tools, and farmer cooperatives. However, challenges like climate variability, water scarcity, and high input costs remain a threat to sustained growth.
Domestic demand and investment fuel expansion
Beyond agriculture, vibrant consumer spending and robust investment activity propelled economic performance. Supported by a low inflation rate of 0.4% in September, remittances of MAD 81.7 billion by August, and increased consumer credit (up 3.9%), household spending remained strong.
Public investment rose 3.3% to MAD 73 billion by September, driving infrastructure development. Foreign direct investment surged by 43.4%, reflecting growing investor confidence, while business loans for equipment purchases grew 21.5%.
The construction sector benefited from this momentum, recording a 6.5% increase in value added and a 10.6% rise in cement sales by September. Exports also grew by 3.8%, led by phosphates (up 21.1%), agriculture, agro-industry, and aeronautics. However, imports expanded by 8.4%, widening the trade deficit by 15.5%.
Challenges to sustained growth
Despite the positive trends, fiscal pressures persist. By September, the budget deficit had widened to MAD 52.8 billion, compared to MAD 35.6 billion a year earlier. Government spending rose by 17%, driven by public investments, social programs, and subsidies, while revenue increased by 12.7%.
The DEPF report highlights the need for careful fiscal and resource management. As the economy adapts to global uncertainties, long-term resilience will depend on addressing water shortages, improving climate adaptation, and maintaining balanced public finances.
A cautiously optimistic outlook
Morocco’s economy is gradually normalizing after years of disruption. Growth in agriculture, manufacturing, and tourism, up 14% in arrivals and 10% in overnight stays, has fueled optimism. Meanwhile, the Casablanca stock market surged 29% since December 2024, reflecting renewed confidence.
However, the DEPF emphasizes that Morocco’s recovery hinges on navigating external pressures and addressing structural challenges, ensuring that progress achieved in 2025 leads to sustained economic stability.