3.6% Growth in Q4 2024: Domestic Demand as the Main Driver of the Moroccan Economy
Moroccan Economy Shows Resilience with 3.6% Growth in Q4 2024
The Moroccan economy recorded a year-on-year growth rate of 3.6% in the fourth quarter of 2024, according to data released by the High Commission for Planning (HCP). Although this growth is more moderate than the 4.2% seen in the third quarter, it remains above the average growth rate for the first half of 2024.
This rebound is primarily attributed to a strengthening of domestic demand, which has played a crucial role in supporting growth. The HCP highlights that household consumption has remained dynamic, driven by rising incomes and favorable financing conditions, contributing 2.6 percentage points to the quarter’s growth.
On the business side, equipment spending has been more cautious; however, a focus on restocking has resulted in an increase in the overall investment contribution, rising to 5.4 percentage points from 3.7 points in the previous quarter.
Nevertheless, this internal momentum was counterbalanced by a negative contribution from foreign trade, estimated at –5.2 percentage points. Indeed, while export volumes increased by 9.2%, particularly boosted by the chemical, electronic, and electrical sectors, imports surged even more dramatically, rising by 15.6% year-on-year. This imbalance resulted in a decline in the import coverage rate by exports compared to the same period in 2023.
Despite these tensions, the financing needs of the economy remained well under control, thanks to improved net transfers and increased public revenues. The financing deficit thus decreased to 3.2% of quarterly GDP, down from 3.8% in the previous quarter.
