Morocco's non-agricultural sector experienced a significant slowdown in growth during the second quarter of 2026, with a year-on-year increase of 1.5%, down from 4.9% in the same period last year. This decline is attributed to a drop in the value added by extractive industries and manufacturing. According to the HCP, the secondary sector's growth rate fell to 3.9% in Q2 2026 from 5.8% in Q2 2025.
The extractive industries saw a substantial decline in value added, falling by 28.6% in Q2 2026, compared to a 13.7% increase in the same period last year. The manufacturing sector also experienced a slowdown, with a 3.2% decline in value added, versus a 4.3% increase in Q2 2025. These declines had a significant impact on the overall growth rate of the non-agricultural sector.
The construction and public works sector also experienced a slowdown in growth, with a year-on-year increase of 2.8% in Q2 2026, down from 7.6% in the same period last year. The electricity, gas, and water sector, as well as waste treatment and sanitation, saw growth slow to 1.9% in Q2 2026, compared to 3.8% in Q2 2025.
The tertiary sector, which includes services, experienced a slowdown in growth, with a year-on-year increase of 4% in Q2 2026, down from 4.5% in the same period last year. However, some sectors within the tertiary sector saw improvements, including financial services and insurance, which grew by 7.7% in Q2 2026, up from 5% in Q2 2025.
The education, health, and social work sector also saw growth accelerate to 6.4% in Q2 2026, up from 6.3% in the same period last year. Additionally, the value added by public administrations and social security increased by 3.4% in Q2 2026, up from 2.8% in Q2 2025. The information and communication sector also saw growth improve to 1.9% in Q2 2026, up from 0.3% in Q2 2025.
However, some sectors within the tertiary sector experienced a slowdown in growth, including hotels and restaurants, which grew by 6.6% in Q2 2026, down from 9.5% in the same period last year. The research and development sector, as well as services provided to companies, also saw growth slow to 2.9% in Q2 2026, down from 4.3% in Q2 2025.
The slowdown in the non-agricultural sector's growth rate has significant implications for Morocco's economy. The country's economic growth has been impacted by various factors, including the decline in the extractive industries and manufacturing sectors. The government will need to address these challenges and implement policies to stimulate growth in these sectors.
Key points
- Morocco's non-agricultural sector growth slows to 1.5% in Q2 2026 from 4.9% in Q2 2025.
- Extractive industries and manufacturing sectors experience significant declines in value added.
- Tertiary sector growth slows to 4% in Q2 2026 from 4.5% in Q2 2025.
