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Amid mounting financial tensions and a wave of sovereign credit downgrades, Morocco has defied the trend, earning an upgrade to investment grade status in 2025. The North African nation is now considered a “rising star” by Standard & Poor’s, reflecting its economic resilience and sustained reform momentum.
Morocco’s transition from speculative to investment grade (BBB-) means the country would have lower borrowing cost. The upgrade also boosts investor confidence, and opens access to a broader pool of international capital.
In a global environment where most emerging markets are facing credit pressure, Morocco’s upgrade signals stability and reform credibility, key assets for attracting long-term investment.
According to S&P, the upgrade reflects Morocco’s economic resilience, with real GDP growth expected to average 4% between 2025 and 2028. Growth is driven by strong domestic demand and export-oriented sectors such as automotive, phosphates, aerospace, digital services, and tourism.
Tourism revenues alone rose 19% in Q2 2025, while phosphate production and cement sales increased by 18% and 15%, respectively.
The government’s reform agenda has also played a central role. Key initiatives include expanding social protection, reforming taxation to formalize the informal economy, and investing in water infrastructure to combat drought. These efforts are expected to keep the budget deficit near 3% of GDP in 2026 and reduce public debt below 60% of GDP by 2028.
Foreign exchange reserves remain robust, covering 5.5 months of imports, and are supported by a $4.5 billion IMF credit line. Foreign direct investment is projected to grow by over 20% annually through 2028, particularly in energy, transport, and export industries.
However, challenges remain. Agriculture, which still accounts for 10% of GDP and a quarter of jobs, is vulnerable to climate shocks. Unemployment stands at 13%, with youth and women disproportionately affected. Per capita income remains relatively low at $4,700.
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