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Morocco’s economic growth to reach 4.2% in 2025, driven by domestic demand

Morocco’s economic growth to reach 4.2% in 2025, driven by domestic demand
Tuesday 21 January 2025 - 10:50 By: Dakir Madiha
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Morocco’s economic outlook remains positive, with domestic demand expected to fuel a 4.2% growth in 2025, according to the latest projections from the High Commission for Planning (HCP). This follows an estimated 4.9% growth in 2024, highlighting the central role of domestic demand in sustaining the country’s economic momentum.

Household consumption supports economic activity  

Household consumption, a key component of Morocco’s economy, is projected to grow by 3% in 2025, slightly lower than the 3.2% increase anticipated in 2024. This steady growth is supported by controlled inflation, salary adjustments from social dialogue agreements, strong remittances from Moroccans abroad, and direct social aid programs that continue to strengthen purchasing power. Household consumption is expected to contribute around 1.8 points to GDP growth in both 2024 and 2025.

Public administration consumption rises  

Public administration consumption is also set to increase, with a projected growth of 4.1% in 2025, up from 3.9% in 2024. This reflects the government’s ongoing commitment to public spending and social programs. Combined with household consumption, national consumption is expected to rise by 3.3% in 2025, following a 3.4% increase in 2024.

Investments strengthen economic growth  

The HCP report emphasizes the importance of investments in supporting Morocco’s economic expansion. Gross investment, which began recovering in 2023, is projected to grow by 6.7% in 2025, following a 9.1% increase in 2024. This growth is driven by ongoing infrastructure projects, government policies favoring capital expenditures, preparations for international events, and steady inflows of foreign direct investment. Investments are expected to contribute 2 points to GDP growth in 2025.

A path to stable and inclusive progress  

The combination of domestic demand and strategic investments underscores Morocco’s efforts to achieve stable and inclusive economic growth. With household and public consumption driving demand, and investments supporting infrastructure and development, the country is well-positioned to maintain its growth trajectory.

As Morocco continues to navigate global economic challenges, its focus on strengthening domestic demand and fostering investment reflects a balanced approach to ensuring long-term prosperity. The HCP’s projections point to resilience and optimism, signaling a positive outlook for the nation’s economy.

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