Moroccan Economy: Positive Outlook Despite Unstable Global Context
Follow-Up
The August 2025 Economic Situation Report released by the Ministry of Economy and Finance indicates that the national economy continues its positive trajectory despite the difficult international context characterized by slowing global growth and ongoing tensions in financial markets.
According to projections from the International Monetary Fund, global economic growth is expected to reach 3% in 2025, down from 3.3% in 2024, while markets continue to experience volatility, with the euro rising by 12.6% against the dollar since the beginning of the year and Brent crude oil prices declining by 14% over the year to settle at $68 on August 25.
Agriculture and Industry Drive Growth
At the national level, the added value of the agricultural sector rose by 4.5% in the first quarter of 2025, driven by a 41% increase in agricultural output. The industrial sector also performed well, with industrial added value increasing by 3.4%, utilizing production capacities at around 77.8%. Raw phosphate production jumped by 15.1% by June, while electricity production grew by 6.1%, and cement sales rose by 11%.
Tourism, Transport, and Communications Rebound
The tertiary sector contributed to boosting economic dynamism, as the number of tourist arrivals increased by 16% by July, and tourism expenses rose by 9.6% by the end of June. The transport sector experienced an 11.6% increase in port traffic, while the communications sector continued to grow, with mobile phone subscriptions rising by 3.9% and internet subscriptions by 4.1%.
Rising Consumption and Investment
Household consumption benefited from a decrease in inflation to 0.5% in July, along with government measures supporting purchasing power and remittances from Moroccans abroad, which reached 55.9 billion dirhams in the first half of the year. Moreover, the job market created 132,000 salaried positions in the second quarter. Meanwhile, investment maintained its momentum, supported by major projects and an increase in public spending by 6.2%. Foreign direct investment inflows rose by 28%, while equipment loans increased by 20.5% and imports of investment goods grew by 14.9%.
Growing Trade Deficit
Conversely, the external sector remains a significant weakness, as the trade balance deficit widened by 18.4% by the end of June, impacted by a 8.9% rise in imports compared to only 3.1% for exports, leading to a decline in the coverage rate by 3.3 percentage points to settle at 59.3%.
