CaixaBank Research: Moroccan Economy Grows by 5.5% in 2025 Amid Investment Momentum and Declining Inflation
The Moroccan economy demonstrated strong performance in 2025, achieving a Gross Domestic Product (GDP) growth rate of 5.5 percent year-on-year in the second quarter, according to a recent report from CaixaBank Research.
The report attributed this development to a recovery in the agricultural sector, ongoing significant investments in infrastructure projects, and resilient household consumption, which provided continuous support for economic dynamism.
The Spanish bank confirmed that investment continued to play a pivotal role in stimulating growth, driven by strategic projects in water, energy, and transport, as well as preparations for international sporting events. Additionally, the contributions of foreign capital flows and institutional reforms enhanced the business climate and bolstered economic actors’ confidence.
On the external front, the report noted a marked improvement in Moroccan exports, led by the tourism, automotive, and fertilizer sectors, with European Union countries accounting for approximately 70 percent of the kingdom’s exports, highlighting the importance of trade partnerships with European markets.
Conversely, the current account recorded an expansion of its deficit, reaching around 2.3 percent of GDP, up from 1.2 percent the previous year, due to rising imports alongside robust investment activity, despite the continued strong performance of exports, tourism revenues, and remittances from Moroccans abroad.
In terms of monetary policy, the report clarified that inflationary pressures had significantly decreased, with general and core inflation rates stabilizing below 1 percent in the autumn of 2025. This allowed Bank Al-Maghrib to reduce the main interest rate to 2.25 percent in March, after remaining steady at 3 percent for five quarters, while maintaining exchange rate stability against a basket of dollars and euros.
Public finances also improved, with public debt decreasing to around 67 percent of GDP. Efforts to enhance tax collection and control expenditures contributed to reducing the budget deficit to approximately 3.8 percent of the national output.
Despite these positive indicators, the report warned of a persistent unemployment rate of around 13 percent, particularly in the agricultural sector, which employs about 30 percent of the workforce and faces increasing challenges due to recurring drought periods.
The institution concluded that the Moroccan economy continues on its growth trajectory, supported by infrastructure investments, the dynamism of the private sector, and stable external demand, emphasizing the need to accelerate structural reforms related to the labor market and enhance resilience to the impacts of climate change.
