In 2024, Morocco’s economy showed signs of recovery and growth in several key sectors. During the third quarter, Gross Domestic Product (GDP) experienced a 4.3% increase compared to the same period last year, marking the best performance since the fourth quarter of 2023. This rebound is attributed to improvements in private consumption, fixed investment and exports.
In the fourth quarter of 2024, the national economy continued its expansion with year-over-year growth of 3%. This increase was driven by a 5.4% rise in domestic demand, which contributed 6.2% to overall economic growth.
The industrial sector, especially the automotive industry, played a crucial role in this growth. Morocco emerged as a significant competitor in the automotive industry, threatening Spanish and European manufacturers. Thanks to its competitive workforce, tax incentives and agreements with companies such as Renault and Stellantis, Morocco’s production and export capacity reached 14.25 billion euros in the last year, with the goal of exceeding 85 billion euros in the next four years. The country currently produces 700,000 vehicles annually and plans to increase this figure to one million, including electric cars.
In addition, Moroccan agricultural production, especially in fruit and vegetables, has surpassed Spanish production and growth. Factors such as cuts in the Tagus-Segura water transfer and EU agreements with Mercosur have favored Morocco, which already plays a key role in supplying tomatoes to Europe and has become the second largest producer of olive oil in Africa.
However, despite these advances, Morocco faces significant challenges. Economic growth is projected to slow to 2.9% due to a weak agricultural season, against a backdrop of several years of severe drought affecting the agricultural sector, which is crucial to the Moroccan economy, accounting for nearly 15% of GDP and employing 45% of the labor force. In addition, the country is facing a growing economic and social crisis that is driving hundreds of young people to try to emigrate to Europe. High unemployment, economic precariousness and growing inequality are contributing factors.
In summary, 2024 was a year of contrasts for Morocco: while certain sectors showed remarkable growth, the country still faces structural challenges that require deep and urgent reforms to ensure sustainable and equitable economic development.