Morocco Records Rise in Domestic Demand in Q1 2026

Morocco's domestic demand showed a notable increase in the first quarter of 2026, rising to 6.5% compared to 6.4% during the same period in 2025, according to the High Commission for Planning (HCP). This sustained growth in domestic demand played a crucial role in the country's economic expansion.

The HCP's latest economic report indicates that domestic demand contributed 6.9 percentage points to the economic growth, an increase from the 5.3 percentage points it contributed in the first quarter of 2025. This suggests a strengthening internal market driving economic activity.

Household consumption expenditure saw a significant rise, growing by 4.6% in the first quarter of 2026, a substantial jump from the 1.1% growth recorded in the same period last year. This surge in household spending contributed 2.6 percentage points to economic growth, up from 0.7 percentage points previously.

Public administrations' final consumption expenditure also experienced an increase in its growth rate, moving from 3.5% in the first quarter of 2025 to 4.9% in the first quarter of 2026. This accounted for a 0.9 percentage point contribution to growth, compared to 0.6 points in the prior year.

However, the pace of growth in total investment, which includes fixed capital formation, inventory changes, and net acquisitions of non-produced assets, slowed down. It decreased from 19.6% in the same period last year to 10.8% in the first quarter of 2026. This slowdown in investment contributed 3.4 percentage points to economic growth, down from 4 points in the previous year.