International Monetary Fund: Morocco Leads Regional Economic Growth at 4.4% in 2025
Morocco’s economy has shown remarkable performance this year, according to a recent report from the International Monetary Fund on the economy in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP), which confirmed that Morocco recorded a growth rate of 4.4%, surpassing several regional economies, including Algeria (3.4%) and Egypt (4.3%).
The report predicts that the national economy will continue its positive trajectory in the coming years, achieving an estimated growth of 4.2% in 2026 and 3.8% by 2030, noting that growth prospects in the region will gradually improve due to rising oil production, strong demand, and ongoing economic reforms.
The report stated that the economic performance of the Middle East and North Africa remained strong overall in 2025, as these economies managed to avoid the immediate repercussions of rising U.S. tariffs and global trade disruptions, while the impact of regional geopolitical tensions remained limited and temporary.
Despite this resilience, the IMF cautioned against potential risks from delayed negative effects, especially given weak global demand and tightening international financial conditions, noting that rising inflation and borrowing costs in major economies could impact countries with high financing needs.
The report highlighted that strong remittances and tourism flows played a crucial role in supporting the external balances of several countries, as remittances continued to grow in the MENA region throughout 2025, contributing to an improvement in current account balances.
It noted that Morocco, Egypt, and Tunisia benefited from the rebound in tourism and improved agricultural production, in addition to increased investments in infrastructure, particularly in Morocco, which emerged as one of the most dynamic economies in the region.
As for oil-exporting countries outside the Gulf Cooperation Council, such as Algeria, the report predicted a widening of the current account deficit in the short term due to falling oil prices, while Iraq’s financial situation is expected to improve thanks to expenditure control policies and gradual increases in oil exports.
In conclusion, the IMF stated that the current momentum of economic growth represents an opportunity to bolster financial and foreign reserves, urging the need to update fiscal and monetary policy frameworks to ensure the sustainability of public finances and enhance the effectiveness of monetary policy in the long term.
