Morocco

After accelerating in 2023, GDP growth slowed to 3.2 percent in 2024, as another drought curtailed agricultural production. Domestic demand remained robust in the first three quarters of the year, with consumption boosted by lower inflation and fiscal support, and investment benefiting from the start of an infrastructure building cycle. Labor market conditions remained weak, due to significant job losses in the agricultural sector and low labor force participation. The effect of stronger demand on the current account deficit has been muted by continued positive trends in tourism, remittances, and manufacturing exports. The gradual fiscal consolidation continued as expected, and the 2025 Budget reiterated the authorities’ commitment to reduce the government debt ratio over the medium term. The authorities have continued with their structural reform agenda and have announced a new strategy to boost employment.