Morocco Factory Activity Downturn Deepens in Q2

Manufacturing production in Morocco slipped by 4.5% year-on-year in Q2 2026, marking the steepest decline since June 2020, after a 1.4% drop in the previous period. The downturn was led by a 29.5% slump in chemical production, a 19.5% decline in computer and electronic products and a 10% drop in clothing. In contrast, metal-product manufacturing rose 14.1%, while metallurgy, automotive and food industries increased 11.6%, 6% and 5.7%, respectively. Outside manufacturing, extractive industries plunged 28.8%, while electricity production edged up 1.9%.

Manufacturing production in Morocco fell by 1.4% year-on-year in Q1 2026, marking the first decrease since Q2 2023, after a 4% jump in the previous period. The decline stemmed mainly from reduced production across key sectors, including other non-metallic mineral products (-8.6%), food industries (-3.5%), clothing (-8.1%), electrical equipment (-11.3%), fabricated metal products excluding machinery (-5.8%), chemicals (-1.4%), and metallurgy (-8.9%). In contrast, output increased in the automotive industry (+4.5%) as well as in other transport equipment (+28.2%), pharmaceuticals (+4.5%), computer, electronic and optical products (+7.1%), and beverage manufacturing (+2.1%).

Manufacturing production in Morocco rose by 4% year-on-year in Q4 2025, following a 2.2% increase in the previous period. Output growth was mainly supported by food (+9.9%), pharmaceuticals (+28.9%), metal products (+14.5%), non-metallic minerals (+4.8%), other transport equipment (+37.1%), and tobacco products (+4.7%). Conversely, declines were seen in automotive (-6.2%), clothing (-4.7%), electronics (-12.6%), electrical equipment (-2.3%), and other manufacturing (-15.4%). The extractive industries index fell by 4.4%, with miscellaneous extractives down 4.6% and metallic ores up slightly by 0.7%. Electricity production, meanwhile, rose by 2.8%. For the full year of 2025, manufacturing activity grew by 4.1%.