Lekjaa: Morocco's economy grew 3.8% in 2024 despite drought

Morocco’s economy grew 3.8% in 2024 despite a sixth consecutive year of drought, with non-agricultural sectors offsetting losses in farming, Budget Minister Fouzi Lekjaa said Wednesday.

Speaking before the House of Representatives’ Committee on Public Finance Oversight and Governance during discussions on the 2024 budget settlement bill, Lekjaa said the implementation of the 2024 budget took place against a difficult domestic and international backdrop marked by global economic uncertainty.

“The year 2024 was Morocco’s sixth consecutive year of drought, which particularly affected the agricultural sector before subsequent rainfall spared us from even more severe conditions,” Lekjaa said.

He said prolonged drought weighed heavily on agriculture, with the sector’s value added declining by 4.8%, reducing production, value creation and overall economic performance.

Despite those challenges, Morocco’s economy expanded by 3.8%, up slightly from the previous year’s growth rate.

Lekjaa described the performance as positive given the economic climate, noting that growth in several European countries ranged between 0.9% and 3.3% during the same period.

He attributed the country’s overall economic expansion to stronger performance in non-agricultural sectors, which grew 4.5%, increasing non-agricultural value added by 0.8%.

Tourism and exports of phosphate products and automobiles were among the main contributors to growth, he said.

Lekjaa said the results demonstrate a structural transformation of Morocco’s economy toward a more diversified growth model that is less dependent on agriculture and climatic conditions.

He highlighted the automotive, aerospace, renewable energy and tourism sectors as increasingly important drivers of economic growth.

The minister also said inflation slowed sharply to 0.1% in 2024, down from approximately 6.6% in 2022.

However, he stressed that inflation remains a major concern, particularly regarding its impact on household purchasing power, especially for low-income families.

On public finances, Lekjaa said Morocco reduced its budget deficit to 3.8% of gross domestic product in 2024.

He noted that the budget deficit determines the country’s financing needs, which are covered through domestic resources or external borrowing.

Looking ahead, Lekjaa said implementation of the 2026 Finance Law is progressing under favorable conditions.

Government revenues continued to increase through the end of June while public spending remained under control, he said, adding that Morocco is on track to end the year with a budget deficit of around 3% of GDP and public debt below 66% of GDP.