Morocco’s economy booms while household spending stalls
Morocco’s economy surged in 2025 with its strongest growth in nearly a decade, yet the average household is feeling the pinch. While the country’s GDP expanded by 4.9%, household consumption crawled forward by just 1.2%. Meanwhile, investment soared by 16.3%, highlighting a widening gap between public spending and private spending.
Morocco’s rapid economic growth is fueled by massive public and private investments, not by rising consumer spending. This disparity is outlined in the latest World Bank economic outlook for Morocco, which underscores the uneven distribution of prosperity across the population.
Infrastructure projects drive economic expansion
Investment surged by 16.3% in 2025, following a 14% increase in 2024. This sharp rise stems largely from major infrastructure projects, particularly those tied to the 2030 FIFA World Cup preparations. Construction activity alone grew by 6.7%, while private investment is gradually recovering after the pandemic-induced slowdown. Since 2020, public spending and investment have consistently outpaced GDP growth, reshaping Morocco’s economic landscape.
Households miss out on the boom
Private consumption growth has lagged far behind, slowing from 4.7% in 2023 to 3% in 2024 and just 1.2% in 2025. While inflation eased to 0.8% last year and consumer confidence began to rebound, household budgets haven’t reflected these improvements. The sluggish rise in spending suggests that Morocco’s growth remains heavily reliant on government-led initiatives rather than broad-based economic gains.
What’s next for Morocco’s economy?
The World Bank anticipates a gradual rebalancing as the current investment cycle matures. With inflation projected to stay low and real incomes expected to rise, private consumption could rebound, potentially reaching 4.8% growth by 2028. Until then, Morocco’s economic engine will continue to run on public projects, leaving household prosperity trailing behind.
