Morocco’s phosphate sector is helping steady the country’s economy at a time when slowing global growth and rising energy prices are putting pressure on many nations.

A new World Bank Global Economic Prospects report forecasts world economic growth will slow from 2.9 percent in 2025 to 2.5 percent in 2026 before improving slightly in the following years. Ongoing tensions in the Middle East have also added uncertainty to global markets and pushed energy costs higher.

For Morocco, which relies heavily on imported hydrocarbons, rising oil prices remain a concern. Higher fuel costs can weigh on household budgets, government spending and the country’s trade balance.

Still, Morocco’s position as one of the world’s leading phosphate producers is providing an important source of support. The country holds about 70 percent of global phosphate reserves and has built a strong presence in the fertilizer market.

The World Bank said stronger fertilizer prices could help raise export earnings and partly offset the impact of higher import costs, giving Morocco some protection against external shocks.

Fertilizer exports provide support

The World Bank expects commodity prices to rise by 22 percent in 2026, while oil prices could be 36 percent higher than in 2025. Those increases are expected to create additional pressure for countries that depend on imported energy.

Morocco, however, has spent years expanding fertilizer production rather than relying mainly on exports of raw phosphate. That strategy has allowed the country to capture more value from its natural resources and strengthen its role in global agricultural supply chains.

Industrial exports have also benefited from Morocco’s efforts to diversify the economy and deepen links with international manufacturing networks. Tourism remains another key source of growth as the country continues to attract visitors from around the world.

Investments aim to strengthen resilience

Alongside its export industries, Morocco has continued to invest in infrastructure, renewable energy and industrial projects as it seeks to reduce its exposure to global market swings.

Despite these efforts, the World Bank warned that the country remains vulnerable to volatility in energy markets. Higher hydrocarbon import costs could contribute to a wider current account deficit next year.

OCP expands production plans

The report comes as OCP Group, Morocco’s state-owned phosphate and fertilizer producer, moves ahead with a new round of investments.

Earlier this month, the company announced plans to raise MAD5 billion ($540 million) through a perpetual subordinated bond issue. The funds will support fertilizer production, renewable energy projects, water infrastructure and green ammonia development.

OCP also plans to increase annual plant nutrition production capacity from 16 million metric tons to 19 million metric tons by 2027. The expansion includes a new phosphate mine in Meskala and a new industrial platform in Mzinda.

The projects are part of Morocco’s broader efforts to strengthen industrial output while gradually reducing its dependence on imported fossil fuels.