Morocco’s economic growth slows to 3.7% in Q4 2024

Morocco’s national economy grew by 3.7% in the fourth quarter of 2024, down from 4.2% in the same period of 2023, according to the High Commission for Planning (HCP).

This growth was primarily driven by domestic demand, in a context marked by controlled inflation but an increasing financing need for the economy, the HCP noted in its economic update for Q4 2024.

Non-agricultural activities grew by 4.4%, while the agricultural sector experienced a decline of 4.9%. The primary sector’s value-added output, adjusted for seasonal variations, dropped by 4.7% in Q4 2024, compared to a 0.1% decrease in the same quarter of the previous year.

This decline was mainly due to a 4.9% contraction in agricultural output, which had previously seen a 1% increase. However, the fishing industry showed a modest recovery, rising by 0.8% after a steep decline of 19.2% the year before.

The secondary sector also experienced a slowdown, with its growth rate falling from 6.9% in Q4 2023 to 4.9% in Q4 2024. This deceleration was driven by a sharp drop in extraction industry growth, which slowed to 6.5% from 16.1%, as well as a decline in manufacturing growth to 3.7% from 7.4%.

Construction and public works showed strong momentum, accelerating to 7% from 2.9%, while utilities—comprising electricity, gas, water, sanitation, and waste management—also saw an increase, rising to 5.7% from 3.6%.

The tertiary sector performed better, recording a growth rate of 4.2% in Q4 2024 compared to 3.3% a year earlier. This improvement was driven by significant growth in hospitality and food services, which expanded by 12.8% after rising by 8.2% in the previous year.

Public administration and social security services also posted stronger growth, reaching 3.9% compared to 1% a year earlier. Similarly, trade and vehicle repair increased by 3.1% from 1.8%, while education, health, and social services grew by 2.7% from 1.5%.

Despite these positive trends, several service sectors experienced slower growth. Research and development, along with business services, slowed to 5.3% from 5.9%. Transport and logistics decelerated to 4.6% from 5.3%, while financial services and insurance declined to 4.3% from 5.5%.

The information and communication sector saw a significant drop, falling to 2% from 4.3%, and real estate services also weakened, growing by only 1.9% compared to 3.3% a year earlier. Overall, the non-agricultural sector’s growth rate increased slightly from 4.3% to 4.4% over the same period.

Taking into account a 6.7% rise in net taxes on products, Morocco’s GDP in volume terms grew by 3.7% in Q4 2024, down from 4.2% a year earlier. At current prices, GDP increased by 6.2% compared to 8.4% in Q4 2023, reflecting a 2.5% rise in the general price level, down from 4.2% in the previous year.

This slowdown in economic growth reflects ongoing challenges in key sectors, despite a controlled inflationary environment and efforts to boost domestic demand. The widening financing gap remains a concern, indicating the need for structural measures to sustain economic momentum.