Morocco expects 4.6% growth in 2025 amid economic recovery

Morocco is projecting a significant economic uptick next year, with Finance Minister Fouzi Lekjaa forecasting a 4.6% growth rate in 2025.

The country is banking on a global economic rebound and continued domestic expansion to fuel this projected growth.

Lekjas has also emphasized the need to gradually reduce the budget deficit. This, he said, is crucial for sustaining ongoing reform and development initiatives, and for creating a financial buffer to protect the economy from potential shocks.

To this end, the government aims to lower the deficit to 3.5% next year and to 3% in both 2026 and 2027.

The country has grappled with consecutive years of drought, severely impacting its agriculture sector, a key driver of the economy.

Despite these challenges, Morocco managed a 3.4% growth rate last year, buoyed by the recovery of the industrial and service sectors.

The government is aiming for a sustained growth trajectory, targeting an average of over 4% annually for the next three years.

However, officials cautioned that this outlook is contingent on global economic stability, particularly in the European Union, and a favorable agricultural season.

Morocco’s economy is still reeling from the effects of the recent drought, which forced a downward revision of the 2023 growth forecast to 3.3%.

The government is optimistic that inflation, which reached record highs in the previous two years, is expected to moderate to 1.5% this year due to easing global price pressures.

Bank Al-Maghrib has responded to the changing economic landscape by cutting its benchmark interest rate last month, the first reduction since 2020.

The government’s projection of a 4.6% growth rate in 2025 reflects renewed confidence in the country’s economic prospects. However, realizing this target will require careful macroeconomic management, continued structural reforms, and favorable external conditions.

While the outlook is optimistic, challenges such as unemployment, income inequality, and climate change remain persistent issues that the government will need to address to ensure sustainable and inclusive growth.