Morocco's economy exceeds expectations: Strong growth of 4.8% in the first quarter of 2025

Economy of the East

Morocco's economy had a strong start to 2025, with GDP growing by 4.8% during the first quarter of the year, according to the latest national accounts data released by the High Commission for Planning. This performance was better than the previous forecast of 4.2% growth, reflecting a marked improvement in economic performance compared to last year. The agricultural sector contributed positively to this growth despite the difficult climatic conditions in the country, with its value added increasing by 4.5% compared to a contraction of 5% in the same period last year.

Non-agricultural activities also showed a strong performance, growing by 4.6%, supported by a marked improvement in several key sectors. The construction and public works sector grew by 6.3%, while the value of manufacturing sectors increased by 3.4%. The electricity and water sector grew by 5%, while the pace of growth in the extractive industries slowed to 6.7% from the previous year's strong growth.

In the services sector, several activities have emerged as key contributors to economic growth. The value of the accommodation and restaurants sector jumped by 9.7%, reflecting a strong recovery in the tourism sector. The education and health sector grew by 6.2%, while financial services and insurance grew by 6.8%. On the other hand, the transportation and warehousing sector saw a slowdown in growth to 4%, and the information and communication sector grew by only 0.5%.

In terms of aggregate demand, economic indicators registered a marked improvement. Domestic demand increased by 8% compared to 4% in the first quarter of last year, contributing nearly 8.5 points to economic growth. Total investment jumped by 17.5%, reflecting investors' confidence in the national economy. On the other hand, foreign trade continued to exert negative pressure on growth, contributing around 3.8 negative points due to the surge in imports against the weak growth of exports.

On the price front, the national economy witnessed a slowdown in the pace of inflation, with the rate of increase in the general price level falling to 2.1% from 3.8% in the same period last year. GDP at current prices increased by 6.9%, while gross national disposable income grew by 6%. On the other hand, the national savings-to-GDP ratio fell to 26.8% from 27.6% in the first quarter of 2024, while the overall investment-to-GDP ratio rose to 28.8%.

These positive indicators point to the recovery of the national economy and the beginning of a new phase of growth, despite some of the challenges faced by global economies. The Bank of Morocco's forecasts have expressed cautious optimism, as the central bank expects the annual growth rate to reach 4.6% for the whole of 2025. Revised data from the High Commission for Planning also confirms a gradual improvement in the performance of the national economy in recent years, with growth rates for 2022, 2023 and 2024 revised to 1.9%, 3.7% and 3.8%, respectively.