Morocco GDP growth rate seen at 4% in 2026 vs 4.4% in 2025: HCP

Morocco GDP growth rate seen at 4% in 2026 vs 4.4% in 2025: HCP

Morocco's economic growth remained robust in the second quarter of 2025, driven primarily by strong domestic demand. According to the High Commission for Planning (HCP), domestic demand contributed 7.7 points to overall economic growth, with household consumption being the main driver [1]. This growth was fueled by improved employment and socio-fiscal measures, which boosted consumer spending.

Public spending slowed slightly, with administration consumption rising by 5% year-on-year. However, infrastructure investment surged, leading to an increase in imports of civil engineering equipment. Private sector investment also picked up, though inventory buildup remained neutral amidst export challenges. Despite the robust demand, inflationary pressure eased. Core inflation dropped to 1.1%, its lowest since 2021, reflecting reduced production costs. Overall consumer prices rose by just 0.8%, down from 2% in the first quarter of 2025. Food inflation fell due to better supplies of key items, while non-food inflation, particularly in energy prices, also slowed [1].

In contrast, external demand continued to weigh on growth, subtracting 3.1 points during the period. The HCP expects Morocco's GDP growth rate to be 4% in 2026, compared to 4.4% in 2025. This forecast is based on the continued resilience of domestic demand and the easing of inflationary pressures.

References:
[1] https://en.hespress.com/115449-domestic-demand-drives-growth-as-inflation-cools-in-q2-2025-hcp.html