Casablanca – Morocco’s economy recorded a growth rate of 4 percent in the third quarter of 2025, reflecting a noticeable moderation compared with the same period last year, when economic expansion exceeded 5 percent. This slowdown comes against a backdrop of shifting sectoral dynamics, evolving domestic demand patterns, and a global environment that remains marked by uncertainty despite relative stabilization in some markets.

According to national accounts data, the deceleration in growth was not the result of a single factor, but rather the outcome of contrasting developments across the main productive sectors. While certain activities regained momentum after a weak performance in 2024, others experienced a loss of pace following a particularly strong rebound the previous year.

The primary sector, which includes agriculture and fishing, returned to positive growth after a period of contraction. Improved agricultural output contributed to this recovery, supported by more favorable conditions compared with the previous year. However, the sector’s overall contribution remained limited, as gains in agricultural activity were partially offset by weaker performance in fishing. Structural challenges, including climate variability and resource constraints, continue to weigh on the sector’s capacity to act as a sustained growth driver.

In contrast, the secondary sector, encompassing industry, manufacturing, construction, and public works, recorded a clear slowdown. After posting robust growth a year earlier, industrial activity expanded at a more moderate pace in the third quarter of 2025. Manufacturing output was affected by softer external demand, while construction activity showed signs of deceleration amid higher financing costs and a more cautious investment climate. These developments reduced the sector’s overall contribution to economic growth, highlighting its sensitivity to both domestic investment cycles and international market conditions.

The services sector, which represents the largest share of Morocco’s economic output, continued to expand but at a slower rate than in the third quarter of 2024. Transport, trade, and hospitality activities showed reduced momentum compared with the previous year, reflecting normalization after earlier periods of strong growth. At the same time, other service segments, including financial services, communications, and public administration, maintained steady performance, helping to preserve the sector’s role as a stabilizing force within the economy.

Despite the slowdown on the supply side, domestic demand remained a key pillar of economic growth. Household consumption and investment activity both strengthened during the third quarter of 2025, allowing internal demand to compensate for weaker sectoral contributions. Gross capital formation, including fixed investment and inventory changes, played a particularly important role, indicating continued confidence among economic operators despite a less dynamic external environment.

Domestic demand made a substantial contribution to overall growth, underscoring its central role in supporting economic activity during periods of external uncertainty. This trend suggests that the Moroccan economy has retained a degree of resilience, supported by internal consumption and ongoing investment, even as some productive sectors face temporary constraints.

On the external side, net exports contributed positively to growth, though to a lesser extent than in the same period of 2024. Export performance remained influenced by developments in key partner markets, as well as competitive pressures in international trade. While global conditions were more stable than in previous quarters, this improvement was not sufficient to fully offset the slowdown observed in certain export-oriented industries.

From a macroeconomic perspective, nominal gross domestic product growth also eased in the third quarter of 2025, reflecting both slower real activity and a moderation in price pressures. Inflation remained contained, contributing to a more stable economic environment for households and businesses. At the same time, national savings remained at a relatively high level, supported by growth in overall consumption in value terms.

However, the economy’s financing needs increased slightly, indicating a widening gap between investment requirements and available domestic savings. This development highlights the importance of maintaining balanced macroeconomic policies that support growth while preserving financial stability.

Economic observers note that the moderation in growth during the third quarter does not necessarily signal a structural weakening of the Moroccan economy. Instead, it may reflect a transitional phase, as the effects of earlier rebounds fade and structural constraints reassert themselves. Strengthening productivity, accelerating industrial diversification, and enhancing the competitiveness of export-oriented sectors are widely seen as key priorities for sustaining higher growth over the medium term.

As the year draws to a close, attention is turning to forthcoming economic indicators to assess whether growth will regain momentum in subsequent quarters. The evolution of domestic demand, investment trends, and external trade performance will be closely monitored as policymakers and economic stakeholders evaluate the outlook for Morocco’s economic trajectory in the coming period.