Economic Growth Overview
Morocco's economy showed signs of deceleration in the third quarter of 2025, as the seasonally adjusted value added from the secondary sector grew by only 3.8%, down from 6.9% in the same quarter of 2024.
This slowdown can be attributed to reduced growth rates in several key areas: construction and public works saw growth decline to 5.6% from 6.8%; the extraction industry dropped to 5.2% from 14%; and manufacturing industries fell to 2.6% from 6.6%. However, the electricity and water sectors experienced an uptick, with growth rising from 4.6% to 5.9%.
Tertiary Sector Performance
The tertiary sector also faced a slowdown, with its growth rate decreasing from 5% in Q3 2024 to 4.2% in Q3 2025. This decline was particularly evident in various service sectors.
Notable reductions included accommodation and food services, which fell to 7.4% from 12.3%; financial and insurance services decreased to 6.8% from 7.9%; and education, health, and social services dropped to 5.7% from 6.8%. Transportation and warehousing also saw a decline to 3.5% from 7.5%, while vehicle trade and repair fell to 3.2% from 4.7%.
Research and development services decreased to 2.8% from 4.3%, and information and communication services slowed to 1.5% from 2.2%. Conversely, public administration and social security services improved to 4.8% from 4.3%, and real estate services rose to 0.9% from a previous decline of 1.7%.
Non-Agricultural Sector Growth
As a result, the value added from the non-agricultural sector experienced a growth slowdown, decreasing from 5.7% in Q3 2024 to 3.8% in the current quarter.
Primary Sector Developments
In contrast, the primary sector's value added rose by 2.6% in Q3 2025, a significant improvement from a decline of 4.2% during the same period in 2024. This growth was driven by a rebound in agricultural activity, which increased to 4.4% from a previous drop of 5.1%, despite a sharp decline in fishing activity, which fell to -24.4% from a rise of 13.4%.
GDP and Price Trends
In this context, and considering the increase in net product taxes on subsidies to 4.8% from 9.9%, the seasonally adjusted Gross Domestic Product (GDP) grew by 4% in Q3 2025, down from 5% in the same quarter of the previous year.
At current prices, GDP rose by 5.7% in Q3 2025, compared to 8.7% a year earlier, indicating a general price level slowdown to 1.7% from 3.7% in the same quarter of the previous year.
Domestic Demand and Investment
Domestic demand surged by 7.6% in Q3 2025, up from 5.9% in the same period of 2024, contributing 8.3 points to national economic growth, compared to 6.5 points previously.
Gross investment (including fixed capital formation, inventory changes, and net acquisition of valuables) saw a robust increase of 15%, up from 11.8% in the same quarter last year, contributing 4.6 points to growth, compared to 3.5 points previously.
Household final consumption expenditures rose by 3.9%, compared to 3% in the same quarter of the previous year, contributing 2.3 points to growth, up from 1.8 points.
Additionally, public administration final consumption expenditures increased their growth rate from 5.5% in Q3 2024 to 7.4%, contributing 1.3 points to growth, compared to 1 point previously.
External Trade Impact
On the external trade front, imports of goods and services in volume rose by 15.3%, compared to 11.1% in the same period of 2024, leading to a negative contribution to growth of 7.7 points, up from -5.8 points the previous year.
Exports also slowed, with growth decreasing from 10.1% in Q3 2024 to 8.2%, contributing 3.4 points to growth, down from 4.3 points a year earlier.
Consequently, the external trade of goods and services recorded a negative contribution to growth of 4.3 points in Q3 2025, compared to -1.5 points in the same quarter of the previous year.