Casablanca – Morocco’s economy continues to benefit from strong inflows of remittances from its diaspora alongside a solid recovery in tourism, both of which are helping to stabilize the country’s external accounts. Data from the Moroccan Exchange Office show that remittances from Moroccans living abroad reached $11.5 billion by the end of November 2025, compared with $11.3 billion during the same period in 2024, reflecting a 1.6% year-on-year increase.
Although the pace of growth appears moderate, it confirms a sustained upward trend in remittance inflows, particularly since the COVID-19 pandemic. During that period, these transfers consolidated their position as a key pillar of Morocco’s financial and monetary stability. Remittances have risen steadily from around $6.1–$6.2 billion in 2019 to an estimated $12.4 billion in 2025, underscoring the lasting economic and social ties linking Moroccans abroad to their country of origin.
Key role in foreign currency reserves
These remittances are crucial for Morocco’s supply of foreign currency, helping to strengthen reserves and support imports of essential goods. In addition, a portion of the funds is deposited in domestic banks as savings, providing liquidity and supporting indirect investment. Beyond financial stabilization, remittances serve a vital social role: 65–70% of these funds go directly to households, helping families cover living expenses and reinforcing social stability by providing a reliable source of income for thousands of Moroccan households.
Remittances provide Morocco with a monetary buffer, but they do not eliminate structural challenges, including a persistent trade deficit. Morocco continues to rely on imports for essential foodstuffs and raw materials that cannot be produced in sufficient quantities domestically, resulting in a chronic trade imbalance.
Trade deficit widens amid rising imports
Data from the Exchange Office shows that Morocco’s trade deficit rose by 22.4% in the first 11 months of 2025, reaching $33.9 billion. This increase was driven by a 9.2% rise in imports of goods, which reached $74.8 billion, while exports grew only 1.8% to $43.7 billion. These figures underscore the structural challenge of balancing imports and exports, even as remittances continue to cushion the economy.
Services and tourism as a stabilizing force
On the services side, Morocco recorded a surplus exceeding $15.1 billion during the first 11 months of 2025, up 15.1% compared to the same period in 2024. Services exports grew 11.4% to $29.5 billion, while services imports increased 7.8% to $14.3 billion. Tourism, in particular, has been a standout contributor. Travel revenues surged to approximately $12.8 billion by the end of November 2025, compared with $10.8 billion during the same period last year, representing an annual growth of 18.7%. Travel expenditures also increased by 12.7% to $3.1 billion, reflecting higher tourist activity and the sector’s global recovery.
Challenges and opportunities for productive investment
Despite the strong inflows of remittances, there is a recognized weakness in channeling these funds toward productive, high value-added investments. Economist Mohamed Jadri estimates that only about 10% of remittances are used for investment, and just 1% of that is directed to projects with significant economic impact. Most funds are invested in real estate or low-impact service activities, limiting their potential to generate employment and contribute to sustainable economic growth.
While remittances and tourism revenues enhance Morocco’s foreign currency reserves and provide essential economic stability, relying solely on these inflows to finance growing imports is not sustainable. Analysts suggest that the country should focus on strengthening and diversifying exports beyond traditional sectors such as phosphates, automotive parts, and aircraft components. Key areas for growth include agro-processing, food and textile industries, electronics, and professional and household equipment, all of which could increase exports, reduce the trade deficit, and foster long-term economic development.
As Morocco navigates a challenging global economic environment, the combination of strong diaspora remittances and a resurgent tourism sector continues to serve as a stabilizing force. However, the country’s broader economic ambitions will depend on leveraging these inflows to promote productive investment, diversify exports, and build sustainable growth. The challenge for policymakers is to convert these financial inflows from a temporary balancing tool into a strategic driver of economic development, creating value, jobs, and resilience for the national economy.
