The current economic momentum in Morocco is primarily driven by large-scale investments rather than everyday household expenditures. This disparity is highlighted in the latest World Bank economic assessment for the country.

Infrastructure megaprojects fuel economic growth

Investment surged by 16.3% in 2025, following a 14% increase the previous year. This acceleration stems largely from major public infrastructure initiatives, particularly those tied to the 2030 FIFA World Cup preparations. The construction sector alone grew by 6.7%, while private investment shows signs of gradual recovery after the pandemic. Since 2020, both public investment and consumption have consistently outpaced nominal GDP growth.

The government’s spending rose by 5.1% in 2025, driven by expanded social protection programs, public sector wage hikes, and enhanced public services.

Households feel left behind by the growth

Private consumption tells a different story. After reaching 4.7% growth in 2023, it decelerated to 3% in 2024 and plummeted to just 1.2% in 2025. While households haven’t cut spending, their outlays are expanding at a fraction of the pace seen in investment and overall economic activity. This slowdown is occurring despite inflation easing to 0.8% and improving consumer confidence.

The numbers reveal an economy still heavily reliant on public contracts and large-scale projects. The benefits of this growth haven’t yet translated into comparable gains for Moroccan families.

Rebalancing on the horizon

World Bank projections suggest a gradual shift ahead. The current investment cycle is expected to peak in coming years, potentially paving the way for stronger private sector activity and household consumption. With inflation projected to decline further and real incomes rising, private consumption growth could rebound to 4.8% by 2028. Until then, Morocco’s economic engine will continue to rev up much faster than the wallets of its citizens.