Strong Growth in Domestic Demand in Morocco: 5.4% Increase in Q4 2024

Editorial: Africa Eye

Domestic demand in Morocco experienced a notable rise of 5.4% in the fourth quarter of 2024, according to the High Commission for Planning (HCP), significantly supporting the country’s economic activity. This increase boosted the contribution of domestic demand to overall economic growth by 6.2 points.

The HCP reported that household consumption continued to drive this growth, showing an annual increase of 3.2%, contributing 2 points to the GDP growth. Despite a decline in rural incomes due to ongoing drought conditions, several factors helped support households’ purchasing power, including overall price stability (with the exception of certain food products), wage increases in the public sector, social transfers, and a rebound in consumer loans.

Additionally, this positive economic momentum spurred an increase in imports of ready-to-consume goods, particularly cars, which saw a remarkable rise of 58.1% by the end of 2024. Public administration consumption also rose by 3.9%, slightly higher than the 3.8% increase recorded in the previous quarter, reflecting higher administrative operating expenses.

These indicators confirm that domestic demand remains one of the main drivers of economic growth in Morocco this year.