- Morocco’s economy expands 5.5% in Q2 2025
- Growth driven by domestic demand and controlled inflation
RABAT, MOROCCO – Morocco’s economy expanded by 5.5% in the second quarter of 2025, up from 3% a year earlier, as booming domestic demand and slowing inflation boosted growth, the country’s statistics agency said.
The High Commission for Planning (HCP) reported that household consumption, government spending and business investment all accelerated, signalling renewed confidence in the economy.
“Domestic demand recorded an increase of 9.2% in the second quarter of 2025 instead of 6.6% in the same period of 2024, thus contributing 9.9 points to national economic growth instead of 7.1 points,” the HCP said.
Broad-based growth across sectors
Household spending rose 5.1%, compared with 3.3% in the same period last year, contributing three points to GDP. Government expenditure surged 6.5%, while investment recorded one of its strongest gains in recent years. Gross fixed capital formation and related investments jumped nearly 19%, compared with 14.3% in 2024, adding 5.6 points to growth.
Sector performance was equally robust. Non-agricultural activities accelerated by 5.5%, while the agricultural sector rebounded with a 4.7% expansion, reversing last year’s 4.4% decline. The fishing industry, however, contracted by 7.7%.
The secondary sector rose sharply, growing 7.4% compared with 3.1% the year before. Electricity and water output climbed almost 9%, rebounding from a 5.2% fall. Manufacturing industries advanced 6.9% against 2.6% in 2024, while construction grew 6.7%, up from 3.6%.
The services sector grew 4.8%, with accommodation and catering posting double-digit growth of 10.5%. Government services, trade and vehicle repair also recorded gains of around 4-5%.
Inflation slows, outlook brightens
Inflation cooled to 2.3%, down from 3.9% in 2024, providing households and businesses with more spending power. Nominal GDP grew even faster, expanding 7.8% from 6.9% a year earlier.
The upbeat figures align with S&P Global’s recent forecast, which projected Morocco’s economy would average 4% growth between 2025 and 2028. Last week, the agency upgraded the country’s long- and short-term sovereign credit ratings to “BBB-/A-3” from “BB+/B” with a stable outlook.
“We raised our long- and short-term sovereign credit ratings on Morocco… The outlook is stable,” S&P said.
While challenges remain in sectors such as fishing, the overall outlook suggests Morocco is entering a period of sustained economic expansion backed by stronger domestic demand, investment appetite and improved credit standing.
