Morocco’s GDP growth accelerates to 4.8% in first quarter 2025

Jul 2, 2025 Business views: 115

Morocco’s economy confirmed its recovery momentum in 2025,with gross domestic product growing 4.8% in the first quarter compared to 3% in the same period last year,according to the High Planning Commission (HCP).

The strong performance reflects marked progress in non-agricultural sectors and recovery in agricultural activity,driven by sustained growth in domestic demand. Non-agricultural activities increased 4.6%,supported by secondary sector revival that recorded 4.5% growth thanks to robust construction and public works performance (+6.3%),electricity and water (+5%),and manufacturing industries (+3.4%).

The tertiary sector progressed 4.7%,notably driven by accommodation and restaurant services (+9.7%) and public services (+5.3%). This broad-based growth demonstrates the economy’s diversified expansion across multiple sectors.

Agriculture,long penalized by drought conditions,began recovering with 4.5% value-added growth,reversing last year’s 5% decline. However,fishing recorded a slight 0.3% decrease. Overall,the primary sector achieved 4.3% growth,breaking from previous year’s decline.

The HCP attributed this momentum to strong domestic demand progression,which grew 8% and contributed 8.5 percentage points to overall growth. Household consumption increased 4.4%,while gross investment surged 17.5% after more modest 4.9% growth in 2024. Public consumption slightly slowed from 5.5% to 5.2%.

External trade created headwinds for growth,contributing negatively by 3.8 percentage points due to imports rising faster (+9.8%) than exports (+2.2%). This external balance deterioration weighs on recovery momentum despite positive investment orientation.

GDP in nominal terms increased 6.9%,reflecting inflation deceleration to 2.1% from 3.8% in the first quarter of 2024. The national savings rate declined slightly from 27.6% to 26.8% of GDP,while gross investment reached 28.8% compared to 26.6% previously.

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