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Morocco’s economy slowed by agricultural slump

By Pramod Kumar
A food market south of Marrakech. Morocco's GDP growth and the agricultural sector are both expected to bounce back in 2025 Alamy/Wendy Johnson via Reuters
A food market south of Marrakech. Morocco's GDP growth and the agricultural sector are both expected to bounce back in 2025

Morocco’s economic growth is projected to slow to 2.8 percent in 2024 due to a 7 percent contraction in the agricultural sector, the country’s central bank has said.

GDP growth will rebound to 4.4 percent in 2025 as the agricultural sector is expected to grow 8.6 percent, assuming an average cereal production of 55 million quintals, Bank Al-Maghrib said in a statement after the third quarterly meeting held this week.

The country reported an economic growth of 3.4 percent last year.

Non-agricultural growth is expected to rise from 3.6 percent in 2023 to 3.9 percent in 2024 and 2025, driven by growth in the manufacturing and extractive industries, as well as the tourism sector.

Headline inflation is likely to decrease from 6.1 percent in 2023 to 1.3 percent this year, before rising to 2.5 percent in 2025 thanks to changes in commodity subsidies and fluctuations in food prices.

The central bank expects the budget deficit to stabilise at 4.4 percent of GDP in 2024, before falling to 3.9 percent next year.

Therefore, the central bank will maintain the current monetary policy stance, keeping the key rate unchanged at 2.75 percent. However, it will continue to monitor economic and social developments closely.

This week, Morocco reported a 13 percent year-on-year increase in tourist numbers in the first seven months of the year.

Overnight stays in the North African country passed 15.35 million from January through to July, which was up 8 percent year on year.

As part of its tourism development plan, the Moroccan government has set a target of 17.5 million annual visitors by 2026, increasing to 26 million by 2030, when Morocco will co-host the Fifa World Cup with Spain and Portugal.

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