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Morocco's Economic Outlook: UN Projects 3.2% Growth for 2025

Morocco's Economic Outlook: UN Projects 3.2% Growth for 2025
Friday 10 January 2025 - 07:50 By: Dakir Madiha
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Morocco is positioned for steady economic expansion in the coming years, with GDP growth projected at 3.2% in 2025 and 3.4% in 2026, according to a new United Nations report released by the Department of Economic and Social Affairs in New York.

This growth forecast comes amid broader global economic developments, with worldwide growth expected to reach 2.8% in 2025. The UN report attributes this global trend to declining inflation rates and ongoing monetary easing measures across major economies.

The broader African continent is anticipated to see modest economic improvement, with growth rates increasing from 3.4% in 2024 to 3.7% in 2025. However, several challenges persist, including elevated debt service costs, limited employment opportunities, and increasing climate change impacts.

On the inflation front, global rates are expected to moderate from 4% in 2024 to 3.4% in 2025, providing some relief to both households and businesses. Major central banks are expected to implement interest rate reductions as inflationary pressures diminish. However, the outlook varies significantly across developing nations, with approximately 20% of these countries projected to experience double-digit inflation rates in 2025.

The UN report emphasizes the need for coordinated international action to address several interconnected challenges, including debt management, inequality, and climate change. It specifically calls for governments to focus investment in key areas such as clean energy infrastructure and essential social services, while cautioning against overly restrictive fiscal policies.

"Governments must adopt forward-looking policies and comprehensive regulatory frameworks to drive sustainable extraction, equitable benefit-sharing, and investments in building productive capacities to maximize development gains," the report states.

UN Secretary-General António Guterres highlighted the significance of the coming year in his foreword, noting: "We must set the world on a path toward a prosperous and sustainable future for all."

The report acknowledges that while the global economy has demonstrated resilience in the face of multiple challenges, current growth rates remain below the pre-pandemic average of 3.2%. Ongoing issues, including weak investment levels, sluggish productivity growth, and high debt burdens, continue to pose obstacles to full economic recovery.

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