The current economic expansion is being driven primarily by massive public and private investment rather than by increased everyday spending from Moroccan families. This is one of the key findings from the latest World Bank economic assessment for the country.

Mega-projects power the economic engine

Investment surged by 16.3% in 2025, following a remarkable 14% increase in 2024. This extraordinary momentum stems largely from major infrastructure developments, particularly those tied to Morocco’s preparations for the 2030 FIFA World Cup. The construction sector alone grew by 6.7% during the year.

The World Bank notes a gradual revival of private investment as well. Since the pandemic’s end, public spending and capital formation have consistently outpaced nominal GDP growth, reshaping the economic landscape.

Families feel left behind

Private consumption tells a different story. After growing by 4.7% in 2023, household spending slowed to 3% in 2024 before stalling at just 1.2% in 2025. While families haven’t cut back, their spending simply hasn’t kept pace with the economy’s overall growth or with the rapidly expanding investment sector.

This discrepancy persists despite inflation cooling to 0.8% in 2025 and consumer confidence beginning to rebound. The pattern reveals an economy still heavily reliant on government contracts and large-scale projects, with benefits trickling down to ordinary households at a much slower rate.

The turning point ahead

Economic observers anticipate a gradual rebalancing. As the current investment cycle matures in coming years, analysts expect consumption and private sector activity to gain more traction. With inflation projected to continue easing and real incomes rising, private consumption growth could accelerate to 4.8% by 2028.

Until then, Morocco’s economic engine will continue to rev much faster than the wallets of its citizens.