Rabat – Morocco’s economy expanded 3.8% in 2024, the country’s statistics office, the High Commission of Planning (HCP), published in a report.
The pace is a slight improvement from 3.7% in 2023 and reflects the country’s slow but fragile recovery, powered by strong domestic demand and persistent inflation.
Though the growth is modest, it is indicative of a degree of resilience. Activity is still being driven by local markets and households, even as tighter prices and rising financial exigencies test the broader bases of the economy.
Agriculture loses ground, industry catches up
Beneath the headline figure lies a more variegated picture. Agriculture, a long-standing pillar of Morocco’s economy, registered a sharp decline. Output in the primary sector shrank by 4.5%, led by a 4.8% decline in agricultural production. The fisheries industry, a source of growth in previous years, also ran out of steam. Its growth decelerated from near 7% to a sluggish 2.6%.
By contrast, non-agricultural sectors performed better. They grew 4.5% due to improvements in principal industries. Extractive activities soared by 13%, while construction and public works rose by 5%. Manufacturing accelerated by 3.3%, and basic services such as electricity, gas, and water management saw a 2.6% rise in added value.
These results show that while the economic engine of Morocco is still heavily reliant on its industrial centers and cities, the rural economy continues to face structural challenges.
Services show mixed signs
Services, the largest sector of the national economy, experienced a modest slowdown. Growth in the sector slowed down to 4.6% in 2024, from 5% last year. Some of the sectors lost momentum, like accommodation and food services, which slowed to 9.6%. Information and communication technology services also experienced a slowdown in pace.
Yet other sectors were stronger. Financial services and insurance grew 7.3%, and the transport and storage sector by 7.4%. Trade, education, and healthcare also made gains. The public sector, administration, and social protection added 4.1% to the national total.
This contrast reflects shifting dynamics in consumer behavior and investment trends. While hospitality and tourism continue to attract demand, growth appears more scattered than it has been in the past.
Inflation exacts its toll
In current prices, GDP grew 7.9%, a slowdown from the 11% expansion in 2023. The data show a 4.1% rise in the general level. Inflation, which for most of the year has been above average, eroded purchasing power and made financing both for enterprises and households more expensive.
The country is balancing on a tightrope. Growth remains tied to domestic consumption, but that consumption is dependent on stable prices and affordable income. The rise in nominal GDP, while welcome, speaks as much to inflation as to real economic growth.
Morocco’s economic record in 2024 is a reason for cautious optimism. Industrial activity is still expanding, and service activity is still dynamic. Yet the pull of inflation, combined with agricultural underperformance, calls for caution.
Recent statistics affirm the ancient truth that the economy moves forward, but not without a fight. The goal now is to keep up speed while lessening imbalances between sectors and between territories.
