AfDB expects Morocco’s growth to reach 3.9% in 2025

Morocco’s economic growth is expected to increase from 3.2 % in 2024 to 3.9% in 2025, driven by robust domestic demand, particularly by investment, the momentum of non-agricultural activities, and the prospect of a better crop year, according to latest African Development Bank report.

In 2026, the Bank forecasts a 3.7% growth in the country due to a slowdown in export industries amid rising U.S. tariffs, while inflation is expected to increase to 2% in 2025 and to 2.3% in 2026.

The budget deficit should continue to fall to 3.6% of GDP in 2025 and to 3.3% of GDP in 2026. The improvement is attributable to consolidation of tax revenues as part of current reforms and to reduction in butane gas compensation charges.

Morocco has a diversified capital base, said AfDB report, noting that natural capital accounts for 28% of total capital, in the form of fishery, agriculture, mining, and renewable energy resources.

Morocco’s new Banking Act, the Organic Finance Act, and the reform of the Commercial Code have modernized the financial sector, strengthened public finance management, and improved the business climate.

The African Bank has commended Morocco for strengthening institutional infrastructure and governance framework, specifically by digitizing tax administration and the judicial system and by reforming the state’s shareholding policy.