Rabat — Morocco’s economy started 2025 on a positive note, with the country’s GDP growing significantly faster than the previous year, according to data from the High Commission for Planning (HCP).
HCP’s report shows that the country’s economy expanded by 4.8% in the first quarter, compared to just 3% during the same period in 2024.
The strong performance came from both a recovery in agriculture and continued strength in non-agricultural sectors. Higher domestic demand and lower inflation also supported the growth.
Non-agricultural sectors drive expansion
The report indicated that non-agricultural activities led the economic growth, with their value increasing by 4.6%, up from 3.6% a year earlier, while the secondary sector performed particularly well, growing by 4.5% compared to 3.2% in the previous year.
Meanwhile, construction and public works showed the strongest gains, jumping 6.3%. The electricity and water sector grew by 5%, while manufacturing industries expanded by 3.4%.
However, the mining sector, which tends to fluctuate widely, slowed its growth to 6.7% from 19.1% in the first quarter of 2024.
The services sector contributing to the growth
The services sector also performed well, growing by 4.7% compared to 3.8% the year before, with the report indicating that hotels and restaurants led the way with 9.7% growth, followed by social and health services at 6.2%, administrative services at 5.3%, and retail trade at 4.3%.
Real estate services returned to positive territory with 0.8% growth after declining 1.4% previously. Some sectors slowed down, including transportation, which grew 4% compared to 6.5% before, and information and communication services, which dropped to just 0.5% growth from 3.3%.
Agriculture bounces back
The agricultural sector made a strong comeback in the first quarter of 2025. Agricultural activities grew by 4.3% after contracting by 4.3% in the same period last year.
Crop production led this recovery with 4.5% growth, reversing a 5% decline from the previous year. Fishing activities declined slightly by 0.3%, down from 10.6% growth the year before.
Inflation cools down
Price pressures eased during the first quarter of 2025, with the GDP deflator, which measures overall price changes in the economy, slowing to 2.1% from 3.8% in the first quarter of 2024. This helped keep nominal GDP growth steady at 6.9%, nearly matching the 6.8% recorded a year earlier.
A recent economic update issued by the World Bank projected that Morocco’s economy is set to see a growth of 3.6% in 2025, as the country is investing efforts to navigate the challenges of inflation.
