{"id":375929,"date":"2025-12-28T11:32:14","date_gmt":"2025-12-28T11:32:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/375929\/"},"modified":"2025-12-28T11:32:14","modified_gmt":"2025-12-28T11:32:14","slug":"moroccos-economy-ends-2025-on-strong-demand-despite-a-19-6-trade-deficit-rise","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/375929\/","title":{"rendered":"Morocco\u2019s Economy Ends 2025 on Strong Demand Despite a 19.6% Trade Deficit Rise"},"content":{"rendered":"

Mohammedia \u2013 Morocco\u2019s economy closed 2025 with resilient domestic demand, sustained investment activity, and mixed external balances, according to the latest Economic Outlook Report issued<\/a> by the Ministry of Economy and Finance.<\/p>\n

Household consumption remained solid, supported by negative inflation of -0.3% in November, rising remittances from Moroccans living abroad, higher consumer credit, and the creation of 220,000 paid jobs during the third quarter of the year.<\/p>\n

Investment spending also intensified, driven by major structural projects and a 16.9% increase in state equipment expenditure by the end of November.<\/p>\n

This momentum was accompanied by an improvement in foreign direct investment inflows, which rose by 28.2% by the end of October, alongside higher imports of capital goods and stronger equipment lending.<\/p>\n

Sectoral performance showed broadly positive trends across primary, secondary, and tertiary activities.<\/p>\n

Favorable climatic conditions supported the 2025\u20132026 agricultural season, while dam filling rates reached 34.7% by December 24. Agricultural exports increased by 7.3% by the end of October.<\/p>\n

Industrial activity recorded mixed but generally positive results. Manufacturing output grew by 2.2% in the third quarter, while extractive industries expanded by 7.4%.<\/p>\n

Electricity production rose by 6.1% by the end of October, and cement sales, an indicator of construction activity, increased by 10.6% by the end of November.<\/p>\n

The services sector continued to consolidate, with tourism arrivals reaching 18 million visitors, up 14% year-on-year, and travel receipts increasing by 16.7% by the end of October.<\/p>\n

External balances, public finances, and global context<\/p>\n

Despite the positive domestic dynamics, external accounts showed<\/a> growing pressures. Exports rose by 2.6% by the end of October, supported mainly by phosphates and derivatives (+16.7%), aeronautics (+8.3%), and agricultural and agri-food products (+1.1%).<\/p>\n

Imports, however, increased by 9.4%, driven by most product categories except energy, whose imports declined by 4.4%. As a result, the trade deficit widened by 19.6%, and the coverage ratio fell to 56.5%.<\/p>\n

Official foreign exchange reserves covered 5 months and 21 days of imports at the end of October.<\/p>\n

Public finances also recorded a wider imbalance. The budget deficit reached MAD 71.6 billion by the end of November, compared with MAD 50.8 billion a year earlier.<\/p>\n

This development stemmed from a sharper rise in overall expenditure (+17.3%) relative to ordinary revenue growth (+13.4%). Credit to the economy grew by 6% by the end of October, driven by lending to both financial and non-financial sectors.<\/p>\n

Meanwhile, the Casablanca Stock Exchange indices MASI and MASI 20 declined by around 5% in November, though they remained up more than 25% compared to December 2024.<\/p>\n

Internationally, the report notes a resilient but fragile global economy. According to OECD projections cited in the document, global growth is expected to slow from 3.2% in 2025 to 2.9% in 2026.<\/p>\n

Oil prices remained under pressure, with Brent crude at $64 per barrel on December 23, reflecting abundant supply and moderate demand. These global conditions form the external backdrop against which Morocco\u2019s economic performance evolved at the end of 2025<\/p>\n

Read also: Morocco\u2019s Tax Revenues Jump 14.5% in Eleven Months<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Mohammedia \u2013 Morocco\u2019s economy closed 2025 with resilient domestic demand, sustained investment activity, and mixed external balances, according…\n","protected":false},"author":2,"featured_media":375930,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164,202739,202740],"class_list":{"0":"post-375929","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy","12":"tag-ministry-of-economy-and-finance","13":"tag-morocco-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/375929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=375929"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/375929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/375930"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=375929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=375929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=375929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}