Economic Governance: The 2025 Finance Law Confirms the Resilience of the Moroccan Model and Its International Credibility

An economic recovery driven by key sectors

The national economy is showing encouraging signs. The agricultural sector is recording a clear improvement, with expected growth of 4.6 percent in 2025, after a contraction of 4.8 percent in 2024. This recovery is supported by rainfall considered promising, pointing to a favorable agricultural season.

At the same time, non-agricultural activities are maintaining their momentum, with estimated growth of 4.6 percent, compared to 4.5 percent the previous year. This trend is underpinned by several sectoral indicators, notably:

• an increase in cement sales of 8.2 percent in 2025;

• tourist arrivals estimated at nearly 20 million visitors by the end of 2025, representing growth of more than 14 percent compared to 2024.

These performances confirm the resilience and vitality of non-agricultural sectors and pave the way for a growth rate approaching 5 percent in the coming years.

Foreign exchange reserves at historic levels

Thanks to the strong performance of transfers from Moroccans residing abroad, tourism revenues, and the inflow of foreign direct investment, estimated at around 5 billion dollars, foreign exchange reserves exceeded 440 billion dirhams at the end of 2025, up 18 percent compared to 2024. This level corresponds to more than 5.5 months of imports, thereby strengthening the Kingdom’s external position.

A notable increase in budgetary resources

The execution of the 2025 Finance Law shows ordinary State revenues of around 424 billion dirhams, representing an increase of nearly 53 billion dirhams compared to 2024 (+14.2 percent).

This performance is mainly attributable to the rise in tax revenues, which reached 43.8 billion dirhams, up 14.7 percent, with a realization rate of 107 percent compared to initial forecasts. These results reflect the effectiveness of the tax reforms undertaken and the improvement in economic momentum.

Meeting social commitments and consolidating social protection

The strength of resources has enabled the State to meet its social commitments, notably through:

• the mobilization of 15 billion dirhams to cover the increase in the public wage bill and finance salary adjustments resulting from social dialogue;

• the strengthening of the budget dedicated to the generalization of social protection, increased to 37.7 billion dirhams in 2025, compared to 32 billion in 2024.

Supporting purchasing power and controlling inflation

As part of efforts to preserve purchasing power and price stability, several measures have been implemented:

• 17.7 billion dirhams allocated to stabilizing the prices of butane gas, wheat, and sugar;

• 4 billion dirhams to support the National Office of Electricity and Drinking Water (ONEE) and maintain electricity tariffs;

• 5.5 billion dirhams allocated to the national livestock restocking program.

Effective coordination between fiscal policy and monetary policy orientations has made it possible to contain inflation at a level below 1 percent, contributing to price stability and the preservation of household purchasing power.

Control of the budget deficit and decline in public debt

Improved revenues and disciplined expenditure management have made it possible to contain the budget deficit at 3.5 percent of GDP in 2025, in line with the objectives set by the Finance Law.

In this context, Treasury debt declined by 0.5 point, falling from 67.7 percent of GDP in 2024 to 67.2 percent in 2025. This downward trajectory is expected to continue, reaching around 64 percent by 2028, alongside a budget deficit stabilized at around 3 percent over the 2026–2028 period.

Strengthened credibility on the international stage

All of these results testify to the relevance of the economic and financial orientations adopted by the Kingdom under the leadership of His Majesty King Mohammed VI. Morocco is thus posting growth levels above global averages and asserting itself as an attractive destination for investment, while consolidating its position within global value chains.

This momentum is part of a sound and sustainable financial framework, welcomed by major international financial institutions, notably the International Monetary Fund and the World Bank, as well as by rating agencies, which converge on the strength of the Kingdom’s economic and budgetary outlook.

Editorial team/le7tv