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Morocco’s economy records robust growth in early 2025

Tuesday 01 July 2025 - 09:20
Morocco’s economy records robust growth in early 2025
By: Dakir Madiha
Zoom

Morocco’s economy demonstrated strong momentum in the first quarter of 2025, with GDP expanding by 4.8%, significantly outpacing the 3% growth recorded during the same period in 2024. According to the High Commission for Planning (HCP), this growth was driven by a rebound in agriculture, robust performance in non-agricultural sectors, increased domestic demand, and easing inflation.

Non-agricultural sectors lead the way

Non-agricultural activities were the primary drivers of growth, registering a 4.6% increase compared to 3.6% in the previous year. The secondary sector performed particularly well, growing by 4.5%, up from 3.2% in 2024.

The construction and public works sector posted the strongest gains, surging by 6.3%. Electricity and water production grew by 5%, while manufacturing industries expanded by 3.4%. However, the mining sector, historically volatile, slowed to 6.7% growth compared to an exceptional 19.1% increase in the first quarter of 2024.

Services sector sees steady growth

The services sector also contributed significantly to the economic expansion, growing by 4.7% compared to 3.8% the year before. Hotels and restaurants led the sector with a remarkable 9.7% growth, followed by social and health services at 6.2%, administrative services at 5.3%, and retail trade at 4.3%.

Real estate services returned to positive territory, growing by 0.8% after a 1.4% decline in 2024. However, some areas, including transportation, saw slower growth at 4%, down from 6.5%, while information and communication services grew by just 0.5%, compared to 3.3% previously.

Agriculture makes a strong comeback

The agricultural sector, which had contracted by 4.3% in the first quarter of 2024, rebounded strongly with a 4.3% growth in 2025. Crop production led the recovery with a 4.5% expansion, reversing the 5% decline recorded the year prior. However, fishing activities declined slightly by 0.3%, following a robust 10.6% growth in the same period last year.

Inflation eases, supporting growth

Inflationary pressures cooled during the first quarter, with the GDP deflator dropping to 2.1%, down from 3.8% in 2024. This helped maintain nominal GDP growth at 6.9%, nearly matching the 6.8% recorded a year earlier.

The World Bank’s latest economic update forecasts a 3.6% overall growth rate for Morocco in 2025, citing ongoing efforts to navigate inflationary challenges and sustain economic progress.



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