EBRD expects Morocco’s growth to reach 3.6% in 2025 & 3.4% in 2026

Growth in Morocco is expected to increase from 3 per cent in 2024 to 3.6% in 2025 and 3.4% in 2026 as structural reforms yield positive results, according to the projections issued Friday by the European Bank for Reconstruction and Development.

In its latest Regional Economic Prospects report, the Bank said Morocco’s manufacturing and construction industries expanded in 2024 despite the drought at the beginning of the year negatively affected the sizable agricultural sector.

Core inflation has been stable, standing at 2.5% in the final quarter of 2024, slightly above the preceding quarter’s rate of 2.3%. In June 2024 Bank Al-Maghrib became the first central bank in North Africa to loosen its stance, bringing the policy rate down by 25 basis points to 2.75 per cent.

According to EBRD forecast, Morocco’s lower energy imports as well as higher remittances, automotive exports and tourism receipts, which increased by 20 per cent year on year, are expected to continue to support the current account balance.

Economic growth across the southern and eastern Mediterranean (SEMED) region is expected to pick up from 2.5% in 2024 to 3.7% in 2025 and 4.1% in 2026.