Morocco’s Economic Growth Driven by Key Sectors and Reforms, S&P Global Reports

S&P Global has confirmed Morocco’s robust economic performance, attributing it to key sectors such as tourism, phosphates, automotive, and aerospace. In its latest report, the agency highlighted Morocco’s commitment to positive economic reforms designed to promote more inclusive and resilient growth. The country has focused on investment-friendly actions, with special attention given to bolstering its water and energy sectors.

The Ministry of Tourism expressed satisfaction with the impressive growth in the hotel industry, which has seen record-breaking figures in tourist arrivals, investment, and employment. In August, the Ministry announced that tourism revenues had surpassed $7.83 billion, reflecting a 16% increase compared to the previous year. The Ministry expects this upward trend to continue.

Morocco’s major player in the fertilizer industry, OCP Group, reported solid performance, with revenues reaching $4.35 billion by June. Similarly, the country’s aviation sector has been expanding rapidly, emerging as a key global hub. The aviation industry experienced the highest growth rate, with a 20% increase in exports totaling $4.5 billion and a workforce of 40,000 employees.

Tangier Med, one of the country’s key maritime gateways, posted a net profit of $82 million for the first half of 2024. The Tangier Med Port Authority reported a 4% rise in net revenue and a 13.9% growth in cargo volume. The port generated a turnover of $203 million, marking a 12% increase from $180 million during the same period in 2023.

In the automotive sector, Morocco’s government is doubling the area dedicated to the industry within Tangier Automotive City’s free zone from 517 to 1,185 hectares to accommodate growing demand from international companies.

S&P Global’s report projects Morocco’s economic growth to average 3.6% between 2024 and 2027, a significant leap from the 1.5% growth recorded in 2020 and 2023. Higher private investment and lower inflation, expected to drop to 1.5% in 2024, are fueling domestic demand and contributing to this broad-based growth across all sectors.

The report also praised Morocco’s comprehensive efforts to tackle water scarcity through an ambitious plan that includes the construction of dams, desalination plants, and water recycling systems. These measures are aimed at improving water efficiency, particularly in agriculture. Morocco has also begun construction of Africa’s largest desalination plant in Casablanca, which will produce 300 million cubic meters of drinking water annually.

Other institutions, such as the International Monetary Fund, have recognized Morocco’s resilience, granting the country “favored nation” status under the Resilience and Sustainability Fund. This initiative aims to support Morocco in overcoming its vulnerabilities and enhancing its climate change resilience.

Regarding national debt, while it has risen, the debt structure remains stable with limited exposure to risks such as interest rates, refinancing, and exchange rates. International bonds account for about a third of Morocco’s foreign currency debt, with a flexible repayment schedule.

In addition to reforms and investments, the report highlighted the importance of Morocco’s upcoming role as a host for major sporting events, including the 2025 Africa Cup of Nations and the 2030 World Cup, which are expected to further stimulate the economy.

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