Morocco’s economy set for stronger growth in Q4 2025, HCP projects – The North Africa Post

Morocco’s economic momentum is expected to strengthen in the final quarter of 2025, with growth projected to reach 4.7 percent year-on-year, up from 4.3 percent in the third quarter, according to projections released by the High Commission for Planning (HCP).

The acceleration reflects improving external demand conditions, particularly from European markets where monetary easing is beginning to stimulate consumption and investment activity. The HCP’s latest economic outlook, covering the second quarter of 2025 and forecasts through year-end, points to sustained domestic demand alongside recovering international trade dynamics.

Consumer spending remains a key growth driver, with household consumption expected to expand by 4.4 percent annually in the fourth quarter. This robust performance stems from multiple factors enhancing purchasing power, including public and private sector wage increases and income tax reforms that have left more money in consumers’ pockets. Investment activity continues its strong trajectory, with a projected 12.6 percent growth rate fueled by increased capital expenditure from non-financial corporations and expanded public infrastructure spending.

The services sector maintains its position as the economy’s backbone, anticipated to grow 4.7 percent year-on-year in the final quarter. Commercial activities, public services, and consumer-oriented businesses are showing particularly strong performance. Manufacturing shows signs of recovery, with quarrying, automotive production, and electrical industries leading the rebound. Construction activity is accelerating notably, contributing an estimated 0.4 percentage points to overall economic growth.

These projections suggest Morocco’s economy has maintained resilience despite global economic uncertainties, with diversified growth sources providing stability. The combination of supportive fiscal policies, recovering external demand, and sustained domestic consumption creates favorable conditions for continued expansion through the end of 2025.