Relative Slowdown of Economic Growth to 4% During the Third Quarter of 2025

Relative Slowdown of Economic Growth to 4% During the Third Quarter of 2025

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Economic Growth Rate Slows to 4% in Q3 2025

The economic growth rate during the third quarter of 2025 recorded a relative slowdown, settling at 4% year-on-year, compared to 4.8% and 5.5% in the first and second quarters, respectively, according to data from the High Commission for Planning.

The Commission indicated, in a memorandum on the economic situation for the third quarter of 2025 and the forecasts for the fourth quarter of the same year and the first quarter of 2026, that the national economy entered a phase of moderation in growth rates during the second half of the year, following the strong momentum that characterized certain sectors in the first half.

This slowdown is primarily attributed to a decline in the pace of manufacturing activities, amid a noticeable decrease in external demand in the summer of 2025, particularly targeting the metal, heavy industry, electronics, and textile sectors.

Conversely, non-tradable services and financial services, along with the real estate and agricultural sectors, continued to support economic activity stability, contributing to a level of activity above its medium-term trend by approximately 0.4 points.

The data further clarified that the improvement in economic performance was mainly based on the strength of domestic demand, despite emerging indicators of gradual moderation, as investment maintained its momentum due to continued public spending on infrastructure and improved business facilities. However, household consumption growth slowed to 3.9% in the third quarter, down from 5.1% in the previous quarter.

On the other hand, external trade continued to exert negative pressure on growth, accounting for a total of 4.3 points during the same period.

In terms of macroeconomic balances, internal indicators showed a degree of resilience despite increasing pressures on public finances, as the budget deficit rose significantly during the third quarter of 2025, while the national economy’s financing needs slightly decreased, settling at 12.3 billion dirhams, compared to 13.7 billion dirhams in the previous quarter.

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