Morocco’s economy experienced a mixed final quarter in 2024, particularly in the service sector, according to the latest business survey from the High Commission for Planning (HCP). While some industries faced a slowdown, others managed to perform well, hinting at a more optimistic outlook for early 2025.
Non-financial commercial services saw a decline in activity, with 49% of business leaders reporting a downturn, while 35% noted an increase. The hardest-hit sectors included telecommunications, air transport, and real estate, all of which suffered significant setbacks. In contrast, hospitality, land transportation, and warehousing experienced notable growth.
Despite this uneven performance, service sector capacity utilization remained relatively stable at 74%. Employment levels also showed little change, with 59% of business leaders reporting stagnation, though 22% noted a decline in their workforce.
Investment, however, remained strong. A significant 76% of businesses continued to spend on equipment upgrades or business expansion, demonstrating resilience despite economic uncertainties.
In wholesale trade, the domestic market showed more encouraging signs. While 53% of wholesalers reported steady sales, 36% saw an increase, particularly in industrial equipment and raw agricultural products.
Inventory levels were considered normal by 86% of wholesalers, and selling prices remained stable for 68%. Employment in the sector also remained largely unchanged, with 77% of businesses reporting no shifts in staffing levels.
Looking ahead to the first quarter of 2025, prospects appear more promising. In non-financial commercial services, 37% of business leaders expect activity to increase, compared to just 8% who anticipate a decline. This momentum is expected to be driven by land transport, warehousing, and IT services. However, postal services and engineering may face a slowdown.
Wholesale trade follows a similar trajectory, with 64% of wholesalers predicting stable sales volumes and 28% expecting growth. Sectors such as household goods, food products, and industrial equipment are set to benefit from this upward trend, though a decline is expected in the trade of raw agricultural products.
While challenges remain, these forecasts suggest a more positive economic trajectory for 2025, reinforcing the Moroccan service sector’s ability to adapt to shifting market conditions.
