Moroccan Industry Gradually Improves, Construction Sector Anticipates Growth by Summer 2025
According to the quarterly economic report released by the High Commission for Planning on Thursday, the industrial and construction sectors experienced noticeable transformations during the first quarter of 2025, amid signs of a gradual recovery in industrial production and expectations of a resurgence in the construction sector during the second quarter of the current year.
Manufacturers in the processing industry reported a slight increase in production, supported by improvements in sectors such as chemicals, food industries, and the production of non-metallic products, while a decline was noted in the activities of clothing, electrical appliances, and rubber and plastic products manufacturing. The capacity utilization rate reached 74%, and most employers considered the level of order books to be normal, with stable employment recorded.
Despite this improvement, 37% of companies reported difficulties in supply, particularly concerning imported raw materials, while 23% of industry players found their financial situation challenging, a figure that surged to 44% within the leather and footwear manufacturing sector.
In the extractive industries, production increased due to enhanced phosphate extraction and improved selling prices, alongside a rise in the number of workers. Conversely, the energy sector saw a decline in production due to reduced electricity, gas, and steam production and distribution activities, along with a drop in employment and prices. Meanwhile, production in the environmental sector remained stable, stemming from stagnation in water collection, treatment, and distribution activities, with demand and the number of employees holding steady.
The construction sector also witnessed an uptick in activity during the first quarter, propelled by improvements in civil engineering and specialized construction activities, while building construction activities remained stable. The capacity utilization rate reached 72%, with 11% of companies experiencing difficulties sourcing raw materials, while 27% of employers described their financial situation as difficult.
Regarding expectations for the second quarter of 2025, employers in the processing industry expressed optimism about production growth, especially in the automotive, chemical, food, and non-metallic product manufacturing sectors, with job stability anticipated.
In the extractive sector, companies expect a potential decline in production due to a likely decrease in phosphate extraction, although employment levels are expected to remain stable. In the energy sector, an increase in production is anticipated despite a projected decline in the workforce, while the environmental sector is expected to maintain stability in both production and employment.
In the construction sector, positive outlooks dominate for the second quarter, driven by expected improvements in specialized construction and civil engineering activities, with anticipated job stability.
