Morocco Rides on Domestic Demand, Anticipates 4.2% Growth in 2025

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Morocco’s economic forecast is optimistic, with domestic demand anticipated to drive a 4.2% growth in 2025, based on the latest estimates from the High Commission for Planning (HCP). This comes after an expected growth of 4.9% in 2024, underscoring the importance of domestic demand in maintaining the country’s economic momentum.

Household consumption, a key component of Morocco’s economy, is projected to grow by 3% in 2025, slightly lower than the 3.2% increase anticipated in 2024. This steady growth is supported by controlled inflation, salary adjustments from social dialogue agreements, strong remittances from Moroccans abroad, and direct social aid programs that continue to strengthen purchasing power. Household consumption is expected to contribute around 1.8 points to GDP growth in both 2024 and 2025.

Public administration consumption is also set to increase, with a projected growth of 4.1% in 2025, up from 3.9% in 2024. This reflects the government’s ongoing commitment to public spending and social programs. Combined with household consumption, national consumption is expected to rise by 3.3% in 2025, following a 3.4% increase in 2024.

The HCP report emphasizes the importance of investments in supporting Morocco’s economic expansion. Gross investment, which began recovering in 2023, is projected to grow by 6.7% in 2025, following a 9.1% increase in 2024. This growth is driven by ongoing infrastructure projects, government policies favouring capital expenditures, preparations for international events, and steady inflows of foreign direct investment. Investments are expected to contribute 2 points to GDP growth in 2025.

The combination of domestic demand and strategic investments underscores Morocco’s efforts to achieve stable and inclusive economic growth. With household and public consumption driving demand, and investments supporting infrastructure and development, the country is well-positioned to maintain its growth trajectory.

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As Morocco continues to navigate global economic challenges, its focus on strengthening domestic demand and fostering investment reflects a balanced approach to ensuring long-term prosperity. The HCP’s projections point to resilience and optimism, signalling a positive outlook for the nation’s economy.