Morocco’s Economic Boom: Tourism and Auto Industry Drive 4% GDP Growth

"Morocco has been and will likely continue to be a country with a solid macroeconomic trajectory. The country is a frontier economy without major macroeconomic imbalances, and foreign direct investment (FDI) flows have allowed it to move towards higher value-added sectors," explain the economists of the American investment bank in a note published this week. The installation of automotive plants has boosted employment in Morocco, while tourism brings in significant revenue to the kingdom each year, it is specified.

Morocco "enjoys macroeconomic and political stability, low labor costs and a strong relationship with the EU," add the experts who consider the kingdom as "a promising candidate for investment grade (IG) status in the near future." This is a credit rating that indicates a low risk of default on a debt, issued by a company or a government. The Moroccan economy grew by 4.8% year-on-year in the first quarter of 2025. Growth driven by the recovery of agriculture and the strength of non-agricultural sectors. The value of non-agricultural activities increased by 4.6%, compared to 3.6% the previous year, relays El Economista.

Industry is booming in Morocco. The sector recorded growth of 4.5% compared to 3.2% the previous year. The trade deficit narrowed to 1.1% of GDP in the first quarter of 2025, compared to 1.7% of GDP in 2024. For some analysts, automotive exports and tourism should continue to support the Moroccan economy. Tourist arrivals in Morocco increased by 16% in the first half of 2025 compared to the previous year. Furthermore, according to data from the Ministry of Industry and Trade, more than 350,000 vehicles were produced during the period, an increase of 36% compared to 2024.

Morocco has become the Eldorado of Chinese investors specializing in the production of batteries for electric cars. According to Capital Economics, the British analysis firm, the weight of the automotive sector in Moroccan GDP exceeds 10.4%, while it employs some 220,000 people and accounts for more than 25% of the kingdom’s total exports. Morocco is becoming a serious competitor to Spain in tourism, as well as in the automotive industry and many other sectors. Morocco is preparing to build in Casablanca what will be the largest shipyard in Africa, intended to compete with the shipyards of southern Europe, such as those of Spain and Navantia.