Economic momentum in Morocco is being driven primarily by large-scale investments rather than everyday spending by families. This imbalance is highlighted in the latest economic assessment by the World Bank.

Major infrastructure projects fuel growth

Investment surged by 16.3% in 2025, following a robust 14% increase in 2024. This acceleration stems largely from public infrastructure initiatives, particularly those tied to preparations for the 2030 FIFA World Cup. Construction activity alone expanded by 6.7%.

The World Bank also notes a gradual recovery in private investment, with both public spending and private capital consistently outpacing nominal GDP growth since the pandemic.

Public sector expenditure climbed by 5.1% in 2025, reflecting expanded social protections, wage increases, and enhanced public services.

Household spending remains subdued

Private consumption has followed a divergent path. After growing by 4.7% in 2023, it slowed to 3% in 2024 and further to just 1.2% in 2025. While families have not cut back, their spending has lagged far behind overall economic expansion and investment growth—despite inflation easing to 0.8% and improving consumer confidence.

This gap underscores an economy still heavily reliant on government-led projects and large-scale initiatives, with limited spillover benefits reaching household budgets.

A turning point on the horizon

The World Bank anticipates a gradual rebalancing in the coming years. As the current investment cycle matures, private consumption and business activity are expected to gain traction. With inflation projected to remain low and real incomes rising, household spending growth could accelerate to 4.8% by 2028. Until then, Morocco’s economy will continue to outpace the financial well-being of its citizens.