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Join on Telegram Rabat – Morocco’s economy expanded by 3.6% in the final quarter of 2024, as stronger household spending and renewed business confidence gave domestic demand a noticeable push.
The figures, published Thursday by the High Commission for Planning (HCP), reflect a cooling pace compared to the previous quarter but still mark a more favorable outcome than the first half of the year.
Households spendings
The closing months of 2024 saw a steady rise in household consumption, supported by improved incomes and easier access to credit.
This alone accounted for 2.6 percentage points of overall growth, the HCP noted. Consumers seemed more confident, helped by a general sense of stability in the labor market and more favorable lending conditions.
Meanwhile, companies slowed down their investment in equipment but appeared to shift focus toward restocking. That move helped lift the overall contribution of investment to 5.4 percentage points in the fourth quarter, compared to 3.7 points in the quarter before.
Foreign trade drags on economic performance
Despite solid domestic momentum, external trade remained a drag. Imports rose sharply by 15.6% year-on-year, outpacing export growth, which climbed by 9.2% thanks to better demand for Moroccan chemical, electronic, and electrical products.
This imbalance pushed Morocco’s trade deficit wider, with the coverage rate of imports by exports dropping compared to late 2023. Foreign trade ended up shaving 5.2 percentage points off GDP growth.
Financing pressures stay contained
The trade gap placed pressure on the country’s financing needs, but stronger fiscal revenues and an uptick in net transfers helped keep things under control. By the end of 2024, Morocco’s financing requirement had fallen to 3.2% of quarterly GDP, down from 3.8% in the third quarter.
As 2025 begins, the outlook remains cautious. While domestic demand shows resilience, the economy’s exposure to global trade headwinds continues to weigh on its balance.
