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Rabat – Morocco’s economy expanded by 4.6% in the first quarter of 2026, slightly slower than the 5% growth recorded during the same period last year, according to new data from the High Commission for Planning (HCP).
The HCP said the economy maintained a “solid growth pace” despite weaker performance in industrial activities, thanks to a strong recovery in agriculture and continued growth in domestic demand.
Agriculture was the strongest-performing sector during the quarter. Agricultural value added rose by 18.4%, compared with 8.1% a year earlier, largely offsetting slower growth in non-agricultural sectors. Fishing, however, declined by 1.9%.
In contrast, the non-agricultural economy slowed, growing by 2.6% compared to 4% in the first quarter of 2025. The industrial sector contracted by 1%, reversing the 2.9% growth recorded a year earlier.
The report attributed the decline to lower output in electricity and water services, extractive industries, and manufacturing, while construction continued to grow but at a much slower pace than last year.
The services sector also lost some momentum, although it continued to expand by 4.3%.
Financial and insurance services recorded one of the strongest performances, growing by 7.6%, while transport and storage increased by 4.8%. Hotels and restaurants remained among the fastest-growing activities with 8.1% growth, though this was slightly below last year’s pace.
Household spending drives growth
Domestic demand remained the main engine of economic growth. Household consumption increased by 4.6%, a significant improvement from 1.1% in the first quarter of 2025.
Public spending also accelerated, rising by 4.9%, while investment continued to grow by 10.8%, although at a slower pace than the nearly 20% recorded a year earlier. Together, domestic demand contributed 6.9 percentage points to overall economic growth.
Meanwhile, inflation remained relatively low. The general price level slowed to 1.1%, down from 1.6% during the same period last year, while GDP at current prices rose by 5.7%.
Foreign trade weighs on economy
Despite stronger exports, foreign trade harmed growth.
Exports of goods and services increased by 9.2% in volume, but imports rose even faster, climbing 12.7%. As a result, external trade reduced overall economic growth by 2.3 percentage points, a much larger drag than the 0.3-point impact recorded a year earlier.
The HCP also reported that Morocco’s gross national disposable income rose by 6.8%, while national savings reached 31.4% of GDP. Gross investment represented 32.9% of GDP, leaving the country’s financing need at 1.5% of GDP during the first quarter of 2026.
