Rabat – Morocco’s economic momentum strengthened through 2025, underpinned by rising investment, easing inflation, and a recovery in key productive sectors, according to the latest country outlook published by CaixaBank Research.
Economic growth accelerated during the year, with GDP expanding by 5.5% year on year in the second quarter of 2025, reflecting a rebound in agricultural activity, sustained infrastructure spending, and resilient household consumption.
Investment remained a central driver of activity, supported by large-scale projects in water, energy, and transport infrastructure, alongside preparations linked to major international sporting events.
This investment push was accompanied by strong capital inflows and continued institutional reforms aimed at improving the business environment.
At the same time, Morocco’s economy became increasingly export-oriented, with tourism, automotive manufacturing, and fertilisers leading outbound flows, primarily toward the European Union, which absorbs close to 70% of exports.
External trade dynamics showed mixed signals. While exports, tourism revenues, and remittances remained robust, buoyant investment activity contributed to higher imports, widening the current account deficit.
The current balance stood at around -2.3% of GDP in 2025, compared with -1.2% the previous year.
Read also: World Bank Report Ranks Morocco Among Top Economies for Business Environment
External debt was forecast at about 42% of GDP, supported by long average maturities exceeding eight years and foreign reserves covering more than five months of imports.
Inflationary pressures eased markedly over the year. Headline and core inflation fell below 1% by autumn 2025, allowing Bank Al Maghrib to reduce its benchmark interest rate to 2.25% in March after five quarters at 3%.
Monetary policy entered slightly expansionary territory as the central bank continued its gradual shift toward an inflation targeting framework, while maintaining exchange rate stability within a fixed band against a dollar euro basket.
On the fiscal front, public debt declined to an estimated 67.2% of GDP in 2025, down from higher levels earlier in the decade.
Fiscal consolidation efforts, including improved revenue mobilisation and spending restraint, helped narrow the budget deficit to around 3.8% of GDP.
Despite this progress, unemployment remained elevated at roughly 13%, reflecting the social weight of agriculture, which employs about 30% of the labour force and has been affected by consecutive years of drought.
Overall, the outlook pointed to continued growth in the coming years, driven by infrastructure investment, private sector momentum, and steady external demand, while structural challenges in employment and climate resilience remained firmly in focus.
