Manufacturing Sector Experiences Setback in Early 2026
The industrial sector in Morocco has encountered a significant downturn in the first quarter of 2026. Recent data released by the High Commission for Planning (HCP) indicates that the index for manufacturing production, excluding oil refining, has decreased by 1.4% compared to the same period in 2025. This decline occurs alongside a reduction in extractive production and electricity generation, despite the positive performance in several export-oriented sectors.
Key Industries Face Contractions
The downturn in the manufacturing index is primarily attributed to declines in several critical branches of the national economy. Notably, the production of electrical equipment saw the most substantial drop, plummeting by 11.3%. Additionally, the printing and reproduction of recorded materials experienced a decrease of 10.6%, while metallurgy faced a contraction of 8.9%. Other sectors such as the non-metallic mineral products manufacturing also reported a decline of 8.6%, while the clothing industry saw an 8.1% reduction in output. Furthermore, food industries, which are a cornerstone of manufacturing activity, registered a 3.5% drop.
Additionally, other contributing sectors included the production of metallic products excluding machines and equipment (-5.8%), the chemical industry (-1.4%), the paper and cardboard industry (-1.7%), and the machinery and equipment manufacturing (-1.7%).
Despite this overall decline, some sectors have managed to showcase remarkable resilience. The automotive industry, a vital engine of Moroccan manufacturing, continued its upward trajectory with a production increase of 4.5%. The most impressive gains were observed in the manufacturing of other transportation equipment, which surged by 28.2% year-on-year, underscoring the growing dynamism in high-value-added industrial activities. Additionally, the pharmaceutical industry also reported growth of 4.5%, while computer, electronic, and optical product manufacturing grew by 7.1%. Other sectors that performed well included beverages (+2.1%), rubber and plastics (+2.8%), textiles (+3.2%), and leather (+5.7%).
In the realm of extractive industries, a slight decline was also noted, with the production index dropping by 1.9% compared to the first quarter of the previous year. This reduction was primarily driven by a 2% decline in the category of miscellaneous extractive industry products. Conversely, the production of metallic ores experienced a modest increase of 0.7%, which helped to temper the overall contraction of the sector. These results reflect a mixed evolution in mining activity amidst fluctuating international demand and commodity market conditions.
Moreover, the HCP reported a 3.7% decrease in the index for electricity production and distribution during the first quarter of 2026. This decline follows higher levels observed in several quarters of 2025 and further corroborates a broader slowdown in industrial activity at the beginning of the year. Nevertheless, the published data highlights that certain strategic sectors, including automotive, pharmaceuticals, and technology-related activities, continue to play a pivotal role in the national production landscape. Their growth partially mitigates the adverse impacts seen in many traditional branches, reaffirming the ongoing transformation of Morocco's industrial framework.
As reported by quid.ma.
