At a time when many emerging economies are still struggling to regain their pre-pandemic growth momentum, Morocco stands out as a notable exception. Since 2022, the growth in its non-agricultural activities has consistently averaged 4.4%, marking an increase of approximately 1.3 percentage points above its historical average. This robust performance has enabled the nation to progressively recover the economic losses incurred during the health crisis.

This is the primary finding of a detailed Policy Paper published in early July 2026 by a collective of distinguished economists. Beyond the immediate economic diagnosis, the study delves into a fundamental question: Is Morocco on the verge of a lasting shift in its economic trajectory, or is it simply benefiting from an exceptionally favorable international climate?

+ Growth fueled by substantial public investment + 

The report’s initial insight reveals that Morocco’s economic resurgence is fundamentally underpinned by significant investment. With an investment rate approaching 30% of its GDP, the Kingdom ranks among the most proactive investing economies in its peer group. Experts attribute this dynamic primarily to the extensive investments made by the State, public institutions, and state-owned enterprises, which are channeling resources into major projects across infrastructure, transportation, energy, and preparations for the 2030 World Cup.

While this strategic policy has undeniably accelerated economic recovery, it also exposes a structural limitation. A considerable portion of the essential equipment required for these projects is imported, meaning that some of the economic benefits accrue to foreign suppliers rather than bolstering the domestic productive fabric. This results in a persistent trade deficit, which continues to exert pressure on overall growth despite the strong performance of Morocco’s export-oriented sectors.

+ Tourism and services emerge as key drivers +

One of the study’s most striking observations concerns the very composition of Morocco’s economic growth.

Contrary to popular belief, the nation’s economy is no longer solely propelled by sectors like automotive or manufacturing.

The tertiary sector has emerged as the principal engine of the current recovery. Areas such as tourism, which is now on track to welcome nearly 20 million visitors, alongside transportation, logistics, financial services, and engineering activities, are collectively responsible for the majority of new value creation.

The construction sector is also experiencing robust growth, largely thanks to major infrastructure developments, while agriculture remains the primary source of economic volatility due to the recurring impact of droughts.

+ Morocco benefits from global economic restructuring + 

According to the authors, the Kingdom is currently reaping the rewards of a profound global economic transformation.

Geopolitical tensions between major powers, the widespread disruptions to supply chains experienced since the Covid-19 pandemic, and evolving industrial diversification strategies are compelling large international corporations to seek production platforms located closer to key European and African markets.

Within this dynamic environment, Morocco is significantly enhancing its appeal.

The study highlights notable examples such as Chinese investments in the electric battery sector, specifically the projects by Gotion High-Tech in Kénitra and CNGR in Jorf Lasfar, which vividly illustrate this new industrial momentum.

More broadly, the experts contend that the Kingdom is progressively solidifying its position as a “connector state,” adept at linking value chains between Europe, Africa, and Asia, a role facilitated by its political stability, advanced logistical infrastructure, and extensive commercial agreements.

+ Economic credibility reassures investors + 

The report further underscores that this growing attractiveness is built upon fundamentally strong macroeconomic indicators.

Financial stability, the steady improvement in public finances, a comfortable level of foreign exchange reserves, and a reduction in sovereign risk collectively bolster the confidence of foreign investors.

Furthermore, remittances from Moroccans residing abroad continue to provide vital support to domestic consumption, while an improvement in the terms of trade has helped mitigate the inflationary impacts of external shocks.

+ The true challenge begins now + 

However, the study adopts a far more cautious tone when addressing Morocco’s medium-term prospects.

According to its authors, the current economic model cannot sustainably rely on ever-increasing public investment.

They pinpoint three significant limitations: the rising public debt, a gradual decline in the return on investments, and the persistent difficulties faced by the private sector in stepping up to take the lead.

Specifically, the document illustrates that generating a single point of economic growth now requires more capital than it did in the early 2000s, a clear indication of decreasing investment efficiency.

For the researchers, the most significant weakness remains the private sector’s capacity to invest, innovate, and enhance productivity.

Access to financing continues to be a challenge for numerous Small and Medium-sized Enterprises (SMEs), competition from the informal sector persistently impacts their competitiveness, and public investments absorb an increasing share of available banking resources, thereby limiting credit accessible to businesses.

This situation impedes the emergence of a growth model driven more by innovation, productivity gains, and private investment.

+ A fresh vision for economic transformation + 

Finally, the report puts forth a compelling idea: For a long time, the development of emerging nations was predominantly predicated on industrialization.

The authors now suggest that certain exportable services—including tourism, information technologies, digital services, and consulting activities—can equally become powerful engines of economic transformation. This is contingent upon their strong integration into international value chains and their ability to create skilled employment opportunities.

+ Morocco at a pivotal moment + 

Ultimately, this Policy Paper delivers a nuanced message. Indeed, Morocco currently benefits from a favorable international environment, characterized by geopolitical fragmentation and the reorganization of global production chains. And yes, its stability, robust infrastructure, and strategic positioning between Europe and Africa undoubtedly enhance its attractiveness.

However, these advantages, in isolation, do not constitute a complete development strategy.

For the authors, the real challenge ahead is to convert this opportune window into sustainable growth through deep-seated reforms across the labor market, the educational system, innovation frameworks, and the overall business environment.

In essence, Morocco currently possesses an unprecedented strategic advantage. The critical question is no longer merely about whether it can attract more investments, but rather whether it can effectively transform its position as a global economic “connector” into a genuine catalyst for lasting prosperity.