Morocco: Economic Growth Soars to 5.5% in the Second Quarter of 2025

The national accounts report reveals a notable improvement in Morocco's economic growth, which reached 5.5% in the second quarter of 2025, compared to 3% during the same period in 2024. Non-agricultural activities recorded a growth of 5.5%, while the agricultural sector saw an increase of 4.7%. The secondary sector experienced robust growth, with the value added in volume, seasonally adjusted, rising by 7.4% compared to 3.1% in the previous year’s second quarter. This growth was attributed to increases in various activities: construction and public works grew by 6.7% instead of 3.6%; electricity and water services rose by 8.9%, reversing a previous decline of 5.2%; and manufacturing industries increased by 6.9%, compared to 2.6% last year. However, extraction industries slowed down, growing by 10.9% instead of 20%. The tertiary sector also saw an increase in its growth rate, rising from 4.2% in the same quarter last year to 4.8% this quarter. This was driven by improvements in several areas, including accommodation and food services, which grew by 10.5% compared to 9.4%; public administration and social security services, which increased by 4.8% instead of 3.9%; and vehicle trade and repair, which rose by 4.4% compared to 3.4%. Consequently, the value added from non-agricultural sectors increased by 5.5% in Q2 2025, up from 3.8% a year earlier. Additionally, the primary sector's value added rose by 4.2% in Q2 2025, following a decline of 4.8% during the same period in 2024. This change was due to a 4.7% increase in agricultural activity, compared to a 4.4% decline last year, while fishing activity decreased by 7.7%, less than the previous year's 12.4% drop. In this context, and considering the increase in net product taxes from subsidies by 6.3% instead of 5%, the Gross Domestic Product (GDP) in volume, seasonally adjusted, showed a growth of 5.5%, up from 3% in the second quarter of the previous year. At current prices, GDP increased by 7.8% in Q2 2025, compared to 6.9% a year earlier, indicating a slowdown in the general price level to 2.3% from 3.9% in the same quarter last year. Domestic demand surged by 9.2% in Q2 2025, up from 6.6% in the same period of 2024, contributing 9.9 points to national economic growth, compared to 7.1 points previously. Gross investment (gross fixed capital formation; changes in inventories; and net acquisition of valuables) rose significantly by 18.9%, compared to 14.3% last year, contributing 5.6 points to growth instead of 4 points. Public administration final consumption also saw an increase, with its growth rate rising from 5.1% in Q2 2024 to 6.5%, contributing 1.2 points to economic growth instead of 0.9 points. Meanwhile, household final consumption expenditures increased by 5.1%, up from 3.3% in the same quarter last year, contributing 3 points to growth compared to 2 points. On the external trade front, imports of goods and services in volume rose by 15.7%, compared to 13.6% in the same period of 2024, contributing negatively to growth by 7.9 points instead of a negative contribution of 6.8 points. Exports increased their growth rate from 6.3% in Q2 2024 to 8.5%, contributing 3.6 points to growth instead of 2.7 points last year. As a result, external trade in goods and services recorded a negative contribution to growth of 4.4 points in Q2 2025, compared to a negative contribution of 4.1 points a year earlier. The need for financing in the economy has worsened, with a decrease in net income received from the rest of the world by 0.9%, instead of an increase of 5.6%. The gross national disposable income increased from 6.8% in the second quarter of the previous year to 7.2% during the same period in 2025. Considering the slowdown in national final consumption in value, which grew by 5.9% instead of 6.5% a year earlier, national savings reached 29.3% of GDP, up from 28.4% previously. Gross investment, for its part, reached 32.5% of GDP compared to 30% in the same quarter last year. Thus, the need for financing in the national economy has increased from 1.6% of GDP to 3.2%.