Domestic demand drives Morocco’s economic growth with 5.4% surge in 2025

Tuesday 15 July 2025 - 09:14

Morocco's domestic demand is set to increase by 5.4% in 2025 and 4.6% in 2026, continuing to fuel the country's economic momentum, according to projections by the High Commission for Planning (HCP).

As the main engine of national growth, domestic demand is expected to contribute around 5.8 percentage points to GDP growth in 2025 and 5 points in 2026, as outlined in the HCP's 2026 Exploratory Economic Budget.

Household consumption is forecasted to rise by 3.6% in 2025 and 3.4% in 2026, contributing 2.1 points to GDP growth in both years—up from 1.9 points in 2024. This improvement is supported by better agricultural incomes, increased wages through social dialogue agreements, easing inflation, and ongoing direct social assistance programs.

Public sector consumption is also projected to grow by 4.1% in 2025 and 3.7% in 2026, pushing final national consumption up by 3.7% in 2025 and 3.5% in 2026. This will result in a GDP contribution of 2.9 points in 2025 and 2.7 points in 2026.

Investment is expected to maintain its recovery, aided by infrastructure upgrades, the implementation of Morocco’s new Investment Charter, and improved financing conditions. It is projected to grow by 9.8% in 2025 and 7.2% in 2026, following a 10.9% increase in 2024. This would translate to a GDP contribution of 3 points in 2025 and 2.3 points in 2026.

Nominal GDP is expected to grow by 6.4% in 2025 and 5.6% in 2026. At the same time, national final consumption is forecast to rise by 5.4% and 4.9% in value terms for 2025 and 2026 respectively, boosting the domestic savings rate to 22.6% of GDP in 2025 and 23.1% in 2026.

Considering net external income, expected to average 6.7% of GDP over the two years, national savings are projected to reach 29.4% of GDP in 2025 and 29.8% in 2026. Gross investment is estimated to account for 31.2% of GDP in 2025 and 31.6% in 2026.