A recent report by Allianz Trade upgraded Morocco’s rating from “B2” to “B1” in the last quarter of 2024, placing it among the safest economies in Africa for business.
The “Country Risk Atlas 2025” report revealed that key sectors have seen significant progress, thanks to public investments and government policies aimed at boosting industrialization.
But challenges like climate change impacts and youth unemployment remain concerns. The report projects Morocco’s GDP to grow by 3.1% in 2024 and 3.5% in 2025.
Industrial growth is expected to thrive with increasing foreign investments while the agricultural sector is on the path to recovery thanks to anticipated rainfall.
Phosphate, one of Morocco’s top exports, is rebounding after a recent slump due to global price fluctuations.
In the medium term, the sector is expected to grow, particularly in the southern regions, which hold rich natural resources.
Climate remains a critical challenge. Morocco faced its worst drought in 80 years in 2023, significantly affecting agriculture.
While autumn 2024 rains may ease the crisis, some regions have experienced severe storms, leading to casualties in the south and infrastructure damage.
On the financial front, Morocco’s debt remains relatively low, expected to reach 26.9% of GDP in 2024. But the fiscal deficit continues to grow, reaching 4.2% of GDP.
Despite ongoing efforts to boost revenues, some state-owned enterprises are accumulating debt, posing potential financial risks.
The government is pushing ahead with reforms to struggling public companies by allowing private ownership. Morocco is also preparing to issue a $1 billion Eurobond this year.
As part of its development plans, Morocco is allocating a significant budget to major infrastructure projects.
The 2025 budget prioritizes building sports facilities for the 2025 Africa Cup of Nations and the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal. The country is also ramping up defense spending in response to regional and global challenges.
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