Morocco’s domestic demand remained strong in Q2 2025, contributing 7.7 points to overall economic growth, according to the High Commission for Planning (HCP).
Household consumption was the main driver, fueled by improved employment and socio-fiscal measures.
Public spending slightly slowed, with administration consumption up 5% year-on-year. However, infrastructure investment surged, boosting imports of civil engineering equipment.
Private sector investment also picked up, though inventory buildup was neutral amid export challenges.
Despite strong demand, inflationary pressure eased. Core inflation dropped to 1.1%, its lowest since 2021, reflecting reduced production costs. Overall consumer prices rose just 0.8%, down from 2% in Q1.
Food inflation fell due to better supply of key items like eggs, legumes, and processed cereals. Non-food inflation also slowed, especially in energy prices, which dropped 2.2% following lower global oil and gas prices.
Service prices rose modestly (+0.9%), while manufactured goods prices remained stable. External demand continued to weigh on growth, subtracting 3.1 points during the period.
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