At a time when many emerging economies struggle to regain their pre-pandemic growth momentum, Morocco stands out as a notable exception. Since 2022, non-agricultural activities have expanded at an average rate of 4.4%, approximately 1.3 percentage points above its historical average, enabling the nation to progressively recover losses incurred during the health crisis.

This is the primary finding of a Policy Paper released in early July 2026 by the Policy Center for the New South. Authored by Abdelaziz Ait Ali, Mahmoud Arbouch, Fahd Azaroual, Karim El Aynaoui, and Adnane Lahzaoui, the study delves beyond a mere cyclical diagnosis, posing a fundamental question: Is Morocco embarking on a sustained new economic trajectory, or is it simply benefiting from an exceptionally favorable international environment?

+ Growth propelled by substantial public investment + 

The report’s initial insight highlights that Morocco’s economic recovery is primarily underpinned by investment.

With an investment rate approaching 30% of its GDP, the Kingdom ranks among the most active investing economies in its category. The authors largely attribute this dynamism to significant investments by the State, public institutions, and state-owned enterprises, which are channeling funds into major infrastructure projects, transport networks, energy initiatives, and preparations for the 2030 World Cup.

While this policy has accelerated economic revival, it also exposes a structural limitation. A substantial portion of the necessary equipment is imported, meaning that some of the benefits from these investments accrue more to foreign suppliers than to the national productive sector. This results in a persistent trade deficit that continues to constrain overall growth, despite strong performances from export-oriented sectors.

+ Tourism and services lead the charge +

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

Contrary to widespread belief, it is not solely the automotive or manufacturing industries that are currently driving the Moroccan economy forward.

The tertiary sector has emerged as the principal engine of recovery. Tourism, now nearing 20 million visitors, alongside transport, logistics, financial services, and engineering activities, collectively account for the majority of value creation.

The construction sector is also experiencing robust growth, fueled by extensive infrastructure projects, while agriculture remains the primary source of economic volatility due to the recurring impact of drought.

+ Morocco benefits from the evolving global economic landscape + 

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

Geopolitical tensions, particularly between China and the United States, alongside supply chain disruptions stemming from the Covid-19 pandemic and new industrial diversification strategies, are prompting major international corporations to seek production platforms closer to European and African markets.

In this evolving context, Morocco significantly enhances its appeal.

The study specifically highlights Chinese investments in the electric battery sector, citing projects like Gotion High-Tech in Kénitra and CNGR in Jorf Lasfar, as clear examples of this new industrial momentum. This demonstrates how Morocco economic growth is attracting global players.

More broadly, the authors contend that the Kingdom is progressively establishing itself as a “connector state,” adept at linking value chains across Europe, Africa, and Asia, thanks to its political stability, advanced logistical infrastructure, and extensive commercial agreements.

+ Economic credibility reassures investors + 

The report also underscores that this attractiveness is built upon robust macroeconomic fundamentals.

Financial stability, the gradual improvement of public finances, healthy foreign exchange reserves, and a reduced sovereign risk profile collectively bolster the confidence of foreign investors. This is crucial for sustained Morocco economic growth.

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

+ The true challenge begins now + 

However, the study adopts a more cautious tone when discussing medium-term prospects.

According to its authors, the current model, heavily reliant on ever-increasing public investment, cannot be sustained indefinitely.

They pinpoint three significant limitations: the rising public debt, the gradual decline in investment returns, and the persistent difficulties faced by the private sector in stepping up to play a more prominent role.

The document specifically reveals that more capital is now required to generate the same point of growth compared to the early 2000s, indicating a diminishing efficiency of investment.

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

Access to financing remains challenging for numerous SMEs, competition from the informal sector continues to depress their competitiveness, and public investments absorb a growing share of available banking resources, thereby restricting credit for businesses.

This situation impedes the emergence of growth driven more by innovation, productivity gains, and private investment, essential for Morocco economic growth.

+ A fresh perspective on economic transformation + 

Finally, the report puts forth an idea worthy of consideration: For a long time, the development of emerging nations primarily hinged on industrialization.

The authors suggest that today, certain exportable services—including tourism, information technology, digital services, and consulting activities—can also become engines of economic transformation, provided they are deeply integrated into international value chains and generate skilled employment.

+ Morocco at its “critical juncture” + 

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

However, these advantages alone do not constitute a comprehensive development strategy.

For the authors, the true imperative now is to convert this window of opportunity into sustainable growth through profound reforms across the labor market, educational system, innovation ecosystem, and overall business environment.

In essence, Morocco currently possesses an unprecedented strategic advantage. The question is no longer merely whether it can attract more investments, but rather if it can effectively transform its role as a “connector” in the global economy into a genuine catalyst for lasting prosperity and robust Morocco economic growth.