Economic momentum in Morocco is being driven by large-scale investments rather than everyday consumer activity. This disparity is highlighted in the latest Economic Situation Report released by the World Bank.

Mega-projects fuel economic expansion

Investment growth reached 16.3% in 2025, following a 14% surge the previous year. This acceleration stems largely from major public infrastructure initiatives, particularly those tied to the 2030 World Cup preparations. The construction sector alone expanded by 6.7%, while private investment has also shown signs of revival since the pandemic.

Public spending climbed by 5.1% in 2025, driven by expanded social protections, wage increases, and enhanced public services. While these measures support broader economic goals, they have yet to translate into stronger household consumption.

Households feel left behind

Private consumption growth has slowed dramatically—from 4.7% in 2023 to 3% in 2024, then to just 1.2% in 2025. Inflation, which fell to 0.8% last year, and improving household sentiment have not yet translated into increased spending. The economy’s reliance on public spending and large-scale projects means that benefits are not yet reaching ordinary Moroccan families at the same pace.

The turning point ahead

The World Bank anticipates a gradual rebalancing. As the current investment cycle matures over the coming years, private consumption and business activity are expected to gain traction. With inflation projected to remain subdued and real incomes rising, private spending could accelerate to 4.8% by 2028. Until then, Morocco’s economic engine will continue to outpace the growth of household budgets.