Morocco’s domestic demand surges 5.8%, driving economic growth

Morocco’s domestic demand jumped 5.8% in 2024,accelerating from 4.9% in 2023,contributing 6.3 percentage points to GDP growth compared to 5.4 points the previous year,according to provisional national accounts data from the High Commission for Planning (HCP).

Household consumption expenditures,including non-profit institutions serving households,increased 3.4%,contributing 2.1 percentage points to economic growth. This moderate pace reflects gradual purchasing power recovery amid persistent inflationary pressures affecting consumer spending patterns.

Investment showed remarkable dynamism,with gross capital formation—comprising fixed capital formation,inventory changes,and net acquisitions of valuables—surging 10.9%. This robust performance contributed 3.2 percentage points to growth,confirming renewed momentum in public and private projects,particularly in infrastructure and productive sectors.

Government consumption also demonstrated solid growth at 5.6%,adding one percentage point to economic performance. This reflects sustained public spending supporting economic activity through various government programs and initiatives.

However,external trade dampened overall growth performance. Imports of goods and services soared 11.6%,creating a negative 5.9 percentage point drag on growth. Exports grew 8%,contributing positively 3.4 percentage points,but the net external trade balance resulted in a negative 2.5 percentage point contribution to growth.

This trade imbalance underscores Morocco’s persistent import dependency,particularly for energy and capital goods. Despite this external headwind,strong domestic demand components—consumption and investment—successfully offset trade deficits,demonstrating the economy’s resilience and internal growth drivers’ effectiveness in sustaining overall economic expansion.