High Commission for Planning: Morocco's economic growth slows to 4%

The High Commission for Planning announced that the Moroccan economy recorded growth of 4% during the second quarter of 2026, compared to 5.8% during the same period of 2025, in a remarkable slowdown reflected in the results of the national accounts issued by the Foundation. This decline comes despite the strong performance of the agricultural sector, which partially compensated for the weakness of non-farm activities. According to the same data, the value added of the agricultural sector jumped by 21.2% during the second quarter, compared to only 8.3% in the same period of the year On the other hand, the value added of non-agricultural activities did not exceed 1.5%, after it had recorded 4.9% a year ago, at a time when the extractive industries declined by 28.6% and the manufacturing industry contracted by 3.2%. Value added growth by sector, Q2 2026 vs Q2 2025 Q2 2026 Q2 2025 Agriculture +21.2% +8.3% Non-farm activities +1.5% +4.9% Extractive industries -28.6% - Manufacturing -3.2% — Consumption and investment On the demand side, domestic demand increased by 5%, driven by an increase in household consumption by 4.1% and a rise in total investment by 6.8%, a dynamic that intersects with recently announced major investment projects, such as an investment of 20 billion dirhams in train projects in Greater Casablanca and a 480 million euro investment by Volkswagen in a battery factory in Quneitra . In contrast, foreign exchanges contributed negatively by 1.6 points to growth, while inflation fell to 0.4% during the second quarter, compared to 1.7% in Same period as 2025. Why does this figure matter? The slowdown is accompanied by a rise in the need for financing to 5% of GDP, compared to 2.4% previously, which means additional pressure on public finances at a time when the new government is preparing to develop its economic and social program, after King Mohammed VI assigned Fatima al-Zahra al-Mansouri to form the new government. The large difference between the performance of the agricultural sector and non-farm activities also reveals the vulnerability of the Moroccan economic model to external shocks and climate variability, while the agricultural sector remains the main supporter of growth this season. These data, issued by the official institution in charge of national statistics, will be among the first economic files awaiting the next government immediately after its inauguration.