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Morocco's Economic Growth Cools to 4% in Q2 2026 Amid Sectoral Shifts
Morocco's economy experienced a notable deceleration in the second quarter of 2026, with GDP growth dropping to 4% from 5.8% in the same period last year, according to the latest data from the High Commission for Planning (HCP). The slowdown reflects diverging sectoral trends: while agricultural output surged by 21.2%, non-agricultural activities saw growth plummet from 4.9% to just 1.5%. The secondary sector contracted sharply by 3.9%, driven by significant declines in extractive industries and manufacturing, even as domestic demand remained the primary growth driver amid controlled inflation.
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Morocco's economic expansion slowed considerably during the second quarter of 2026, with the national growth rate settling at 4% compared to 5.8% recorded in the corresponding quarter of 2025, new figures from the High Commission for Planning (HCP) reveal.
Contrasting Sectoral Performance Defines Q2 Growth
The headline growth figure masks sharply divergent trends across different sectors of the economy. According to the HCP's quarterly economic report, non-agricultural activities experienced a dramatic slowdown, with growth decelerating from 4.9% to just 1.5% year-over-year. In stark contrast, the agricultural sector posted robust expansion, with value-added surging 21.2% compared to 8.3% in the previous year.
"The evolution encompasses contrasting sectoral dynamics," the HCP noted in its information brief on the national economic situation for Q2-2026. The primary sector—comprising agriculture and fishing—demonstrated exceptional strength, with overall value-added jumping 20.9%. This reflected the agricultural sector's 21.2% growth alongside a 15.9% increase in fishing activities.
Secondary Sector Faces Significant Headwinds
The secondary sector encountered substantial challenges during the quarter. Value-added in this segment, adjusted for seasonal variations, contracted by 3.9% after posting 5.8% growth in the same period of 2025. This sharp reversal stemmed from multiple factors affecting industrial performance.
Extractive industries experienced the steepest decline, with output plummeting 28.6% compared to a 13.7% increase the prior year. Manufacturing industries also retreated, falling 3.2% versus a 4.3% gain previously. Construction activity decelerated to 2.8% growth from 7.6%, while electricity and water utilities slowed to 1.9% from 3.8%.
Services Sector Shows Resilience
The tertiary sector displayed relative stability despite the broader slowdown. Value-added growth in services eased modestly to 4% from 4.5% in Q2 2025, demonstrating the sector's resilience amid challenging economic conditions.
Inflation Remains Contained
Economic growth occurred within a framework characterized by controlled price pressures and increasing financing requirements for the national economy, the HCP observed. At current prices, gross domestic product rose 4.4% in Q2-2026, translating to a general price level increase of just 0.4%—indicating that inflation remained well-managed during the period.
The moderate inflation backdrop, combined with domestic demand remaining the principal growth engine, suggests the economy continues to benefit from supportive internal consumption patterns even as external and production-side factors create headwinds for certain sectors.