The Moroccan economy has demonstrated resilience and positive trends in 2024 despite facing significant challenges. Recent rainfall has alleviated drought conditions, contributing to a more favorable outlook for the agricultural sector. Morocco's overall Gross Domestic Product (GDP) growth decelerated to 3.2 percent due to drought impacts. However, non-agricultural growth increased to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation.
Inflation fell below 1 percent, allowing Bank Al-Maghrib to begin easing monetary policy. Morocco's external position continues to be stable, with a moderate current account deficit financed by increasing foreign direct investment inflows, supported by strong investor confidence. Despite spending pressures, the debt-to-GDP ratio is gradually declining.
Significant socioeconomic challenges persist. The recent inflationary shock has eroded households' purchasing power, resulting in depressed confidence indicators. Although urban labor markets showed improvement, with the addition of approximately 162,000 jobs in 2024, job creation remains a critical challenge. Over the past decade, the working-age population has grown by over 10 percent, while employment has increased by only 1.5 percent. This gap is influenced by the lingering impacts of the post-pandemic shocks, the delayed impacts of recent reforms, and the low level of women's participation in the labor market.
The economy is expected to grow faster at a pace of 3.6 percent in 2025, and improved climatic conditions should allow for a partial recovery in agricultural output, with agricultural GDP projected to expand by 4.5 percent. Non-agricultural growth is expected to decelerate slightly to 3.5 percent due to base effects.
The report includes a special focus chapter covering Morocco's business climate, with insights from the Business Ready report dataset published in 2024, highlighting opportunities for reform.
The report demonstrates that with strategic reforms and a commitment to modernization, Morocco has the potential to significantly enhance its business environment, fostering economic growth and creating a more inclusive job market.