Morocco economy grows 4.9 percent on agriculture rebound and investment surge

Tuesday 09 June 2026 - 10:16

By: Dakir Madiha

Morocco economy grows 4.9 percent on agriculture rebound and investment surge

Morocco’s economy expanded by 4.9 percent in 2025, accelerating from 4.4 percent the previous year, according to national accounts. The performance marks the country’s strongest annual growth since the post-pandemic recovery phase. The expansion was driven by a rebound in agriculture and a sharp rise in domestic investment activity.

Agriculture played a central role after a difficult 2024 marked by a 4.8 percent contraction linked to severe drought. In 2025, improved rainfall conditions replenished reservoirs and supported cereal production. The sector returned to growth of around 4.5 percent, removing a major drag on overall economic performance.

Investment activity also strengthened sharply. Gross fixed capital formation rose by 18.2 percent year on year in the first half of 2025, following a 12.8 percent increase in 2024. Public spending on infrastructure linked to major sporting events, including preparations for the 2030 FIFA World Cup co-hosting and the Africa Cup of Nations, supported construction, transport, and tourism-related projects. Policy frameworks such as national investment incentives and sovereign investment funds further directed capital into productive sectors.

Non-agricultural industries also contributed to the expansion. Manufacturing output increased by 5.2 percent in the first half of the year, while services grew by 4.8 percent. Tourism reached a record 13.5 million visitors by the end of August, reinforcing service-sector momentum. Inflation remained subdued at an average of 0.8 percent, supporting household purchasing power and macroeconomic stability.

External assessments of the economy pointed to sustained momentum. Growth is expected to remain close to 4.8 to 5 percent in 2026, supported by continued infrastructure investment, agricultural recovery, and improving fiscal conditions. Tax revenues reached 24.6 percent of GDP in 2025, reflecting reforms in revenue administration and broader fiscal consolidation efforts. The economy is now operating within a multi-quarter growth cycle driven by both domestic demand and structural investment programs.