Construction, tourism, and industry anchor Morocco’s economic momentum in 2025
Morocco's Economy Powers Ahead: Construction Boom, Tourism Surge, and Industry Growth Lead the Way
Moroccan economy shifts gears, with non-agricultural sectors driving growth.
RABAT – Morocco’s economic performance in the first half of 2025 showcases a strong transition towards non-agricultural sectors as key industries like construction, tourism, mining, and manufacturing post impressive growth. This data was revealed during a joint meeting of Parliament's finance and economic development committees held on Thursday.
Construction Sector Soars: Infrastructure Projects Fuel Growth
Cement sales, a significant indicator of construction activity, surged by 15.3 percent in the second quarter, a sharp rise from the first quarter's 4.6 percent increase. This surge is attributed to the accelerated pace of major infrastructure projects in preparation for the 2025 Africa Cup of Nations and the implementation of the direct housing subsidy program, which has benefitted 55,512 individuals as of July 10.
Tourism Rebounds: Visitor Numbers Spike
The tourism sector continues its robust recovery with a remarkable 19 percent year-on-year increase in tourist arrivals across border entry points during the first half of 2025. Overnight hotel stays also saw a significant rise, increasing by 14 percent by the end of May.
Mining Sector Boasts Strong Performance
The phosphate sector has also contributed significantly to economic momentum. OCP Group's turnover witnessed a 10.2 percent increase in the first quarter, driven by higher sales volumes and international demand from Europe, Africa, Oceania, and Brazil. Moroccan phosphate exports increased by 10.3 percent through May, aided by tighter global supply resulting from Chinese export restrictions.
Industrial Growth Persists: Manufacturing Drives Expansion
The industrial sector maintains its expansion trajectory with a production growth of 3.2 percent in Q1, spurred by strong performances in the automotive, chemical, and agri-food industries. Retail sales benefit from improved household purchasing power and easing inflation, reflecting delayed effects of wage hikes and enhanced rural incomes.
Trade Dynamics: Imports Rise, Export Coverage Ratio Declines
Imports increased by 7.4 percent, primarily driven by energy, equipment, and semi-finished and consumer goods. Conversely, the export coverage ratio declined by 2.7 points to reach approximately 60 percent.
Shifting Towards Resilience:
The Ministry of Economy and Finance asserts that these developments demonstrate a sustained transition towards a more resilient and climate-independent economic model, with non-agricultural sectors nearing their structural potential for the third consecutive year.