Morocco’s economy posted a growth rate of 3.7% in the final quarter of 2024, down from 4.2% during the same period the previous year. This slowdown is largely attributed to a sharp decline in agricultural activity, even as non-agricultural sectors maintained steady momentum. While inflation remains under control, the overall picture is clouded by a growing financial shortfall in the economy.
The primary sector, which includes agriculture and fishing, took a significant hit. Agricultural output dropped by 4.9%, a reversal from the modest 1% growth seen a year earlier. Fisheries saw a marginal uptick of 0.8%, but it wasn’t enough to offset the sector’s overall decline. The secondary sector also lost steam, with growth slowing to 4.9% from 6.9% in 2023. Extractive industries and manufacturing both weakened, growing by 6.5% and 3.7% respectively. However, the construction sector stood out with a notable acceleration to 7%, and energy and environmental services also picked up, expanding by 5.7%.
The tertiary sector proved to be a bright spot, showing stronger momentum with 4.2% growth, up from 3.3% the previous year. Key contributors included hospitality and food services, which surged by 12.8%, along with public services (up 3.9%) and retail trade (up 3.1%). Health, education, and social services also improved. On the other hand, some service areas such as research, transport, finance, and real estate experienced slower growth.
Domestic demand remained the primary driver of economic activity, though it too showed signs of easing. Overall, it rose by 7.6%, slightly below the 8.1% increase recorded in late 2023. Household consumption slowed to 4.1%, while public sector consumption saw a mild boost at 4.8%. Gross investment grew a robust 15.3%, contributing 5.4 percentage points to total growth—one of the economy’s strongest pillars this quarter.
Trade performance, however, continued to drag on growth. Imports jumped 15.6%, up from 12.5% the year before, exerting a negative impact of 9 percentage points on overall expansion. Although exports grew by 9.2%, their positive effect was limited to 3.8 points, resulting in a net trade contribution of minus 5.2 points—the same as last year.
At current prices, GDP increased by 6.2% in the fourth quarter, a slower pace compared to 8.4% a year ago. Inflation remained contained, with consumer prices rising 2.5% versus 4.2% at the end of 2023. Yet the country’s financing gap widened, moving from 1.4% to 3.2% of GDP. National savings reached 28.8% of GDP, while gross investment climbed to 32%, a marked rise from 29.6% the year before.
Despite the overall deceleration, the outlook remains mixed across different sectors. Investment remains a strong point, domestic consumption is holding firm, and inflation is under control. But the continued weakness of agriculture and a widening trade deficit underscore Morocco’s vulnerability to external shocks and climate variability, which continue to challenge the sustainability of its growth model.
