Morocco Economic Outlook
A diversified economy with strong export sectors:
Morocco has a relatively diversified economy compared to its North African peers, with key industries including agriculture, manufacturing, and tourism. The country is a major exporter of phosphates, automobiles, and textiles, with strong trade ties to Europe. The government has also invested heavily in renewable energy, particularly solar and wind power, to reduce dependence on imported energy.
Tourism and infrastructure development:Tourism is a crucial contributor to Morocco’s economy, with cities like Marrakech, Casablanca, and Fez attracting millions of visitors annually. The government has also prioritized infrastructure projects, including high-speed rail and port expansions, to boost economic competitiveness. However, the COVID-19 pandemic disrupted tourism and trade, slowing growth in recent years.
Economic challenges and unemployment:While Morocco has made progress in economic reforms, it still faces challenges such as high unemployment, particularly among youth. The informal economy remains large, limiting tax revenues and social security contributions. Additionally, water scarcity and climate change pose risks to the agricultural sector, which employs a significant portion of the population.
Morocco’s economic outlook:Morocco’s’ economy is expected to expand steadily, supported by continued investment in industry, tourism, and renewable energy. Government reforms to improve the business climate and attract foreign investment will be key to long-term growth. However, addressing unemployment and improving labor market conditions will be necessary for more inclusive economic development.
Morocco's Macroeconomic Analysis:
Nominal GDP of USD 144 billion in 2023.
GDP per capita of USD 3,901 compared to the global average of USD 10,589.
Average real GDP growth of 2.6% over the last decade.
Sector Analysis
In 2022, services accounted for 54% of overall GDP, manufacturing 15%, other industrial activity 19%, and agriculture 12%. Looking at GDP by expenditure, private consumption accounted for 62% of GDP in 2023, government consumption 19%, fixed investment 28%, and net exports -9%.International trade
In 2020, manufactured products made up 75% of total merchandise exports, mineral fuels 1%, food 19%, ores and metals 4% and agricultural raw materials 1%, with other categories accounting for 0% of the total. In the same period, manufactured products made up 62% of total merchandise imports, mineral fuels 17%, food 14%, ores and metals 4% and agricultural raw materials 1%, with other goods accounting for 2% of the total. Total exports were worth USD 36 billion in 2023, while total imports were USD 61 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.6% in the decade to 2023. To read more about GDP growth in Morocco, go to our dedicated page.
Fiscal policy
Morocco's fiscal deficit averaged 4.6% of GDP in the decade to 2024. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 10.9% in the decade to 2024. For more information on Morocco's unemployment click here.
Inflation
Inflation averaged 2.0% in the decade to 2024. Go to our Morocco inflation page for extra insight.
Monetary Policy
Morocco's monetary policy rate ended 2024 at 2.50%, on the same level as a decade earlier. See our Morocco monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the dirham weakened by 9.9% vs the U.S. dollar. For more info on the dirham, click here.
Economic situation in Morocco
As anticipated by our Consensus, annual GDP growth waned in Q4, to 3.0% from 4.3% in Q3 according to preliminary estimates from the statistical office. The moderation was due to softer total investment and private consumption growth. Shifting Q1 2025, the economy should be expanding at a faster clip than in Q4, according to both our Consensus and the statistical office. Q1’s quicker rise will be underpinned by faster growth in exports. That said, this projection for GDP hinges on the weather due to its importance for the agricultural sector, which accounts for around 12% of GDP. The rainy season (November–March) isn’t off to a great start, and large parts of the country are still experiencing severe drought. In other news, in late January, the country’s investment minister announced Morocco had approved USD 9.4 billion in projects since late 2022, boding well for employment.Morocco Economic Forecasts
Projections out to 2034.46 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 17 expert analysts.
Want to get insight on the economic outlook for Morocco in the coming years? FocusEconomics collects projections out to 2034 on 46 economic indicators for Morocco from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Morocco economy. To download a sample report on the Morocco's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.