After a slowdown at the end of 2024, Morocco’s economy is showing signs of renewed momentum. Preliminary estimates suggest GDP grew by 4.2% in Q1 2025, largely driven by a strong recovery in services and extractive industries. This trend is expected to continue into Q2, with a projected growth rate of 3.8%, although global uncertainty remains a significant concern.
In Q4 2024, Morocco recorded 3.6% annual GDP growth, slightly below the previous quarter. This was mainly fueled by robust domestic demand — notably household consumption and renewed inventory investment by businesses. However, external trade continued to weigh heavily, with net exports contributing -5.2 points to growth due to a sharp 15.6% surge in imports.
The start of 2025 brought stronger economic momentum. Services — especially accommodation — grew by 13.2%, while extractive industries and construction expanded by 6.7% and 6.4% respectively. Agriculture grew 3.1%, while manufacturing remained sluggish due to weak global demand.
Household consumption remained a key driver, boosted by fiscal reforms, wage increases, and tax relief. Yet inflation climbed to 2.2%, largely driven by rising food prices and specific tariff adjustments.
Bank Al-Maghrib continued its monetary easing path, lowering the policy rate to 2.25% in March 2025. This helped ease bank liquidity pressures and contributed to a decline in lending rates. Meanwhile, the Moroccan dirham appreciated against both the euro (+4.2%) and the dollar (+1.1%).
The Casablanca stock exchange posted remarkable gains, with the MASI index surging 36.5% year-on-year in Q1 2025. Market capitalization jumped by 37.8%, buoyed by strong performances in mining, real estate, transport, and healthcare. Trading volume also soared, up 186.5% from the previous year.
Looking ahead, Morocco’s GDP is expected to grow by 3.8% in Q2 2025. Agriculture, services, and construction are set to drive this performance, while manufacturing may struggle due to a less supportive global environment.
However, the outlook remains clouded by international risks. Chief among them: U.S. trade policy changes that could disrupt global supply chains. A 90-day delay in the implementation of tariff hikes offers temporary relief, but volatility in commodity markets and financial exchanges continues.
Morocco enters 2025 with renewed economic energy, but navigating the year ahead will require vigilance. While domestic demand remains strong, the country’s resilience to external shocks will be key in preserving growth momentum.
