While many emerging economies continue to struggle to regain their pre-pandemic growth momentum, Morocco stands out as an exception. Since 2022, non-agricultural activities have seen an average growth of 4.4%, exceeding its historical average by approximately 1.3 percentage points. This robust performance has allowed the nation to steadily recover from the economic setbacks incurred during the health crisis.

These findings are central to a Policy Paper published earlier in July 2026, co-authored by Abdelaziz Ait Ali, Mahmoud Arbouch, Fahd Azaroual, Karim El Aynaoui, and Adnane Lahzaoui. Beyond a simple cyclical diagnosis, the study delves into a fundamental question: Is Morocco embarking on a sustained new economic trajectory, or is it merely benefiting from an exceptional international environment?

+ Growth propelled by substantial public investment + 

The report’s primary insight reveals that Morocco’s economic resurgence is fundamentally 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 from the State, public institutions, and state-owned enterprises, channeling funds into major projects across infrastructure, transport, energy, and preparations for the 2030 World Cup.

While this policy has undeniably accelerated economic recovery, 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 dynamic contributes to a persistent trade deficit, which continues to exert pressure on overall growth despite strong performances from export-oriented sectors.

+ Tourism and services drive the economy +

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

Contrary to popular belief, the automotive industry or manufacturing alone are not the sole drivers of the Moroccan economy today.

Instead, the tertiary sector has emerged as the principal engine of recovery. Tourism, now attracting nearly 20 million visitors annually, 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 major infrastructure projects, while agriculture continues to introduce significant volatility to the economy due to the recurring impact of drought.

+ Morocco benefits from the new global economic landscape + 

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

Geopolitical tensions between China and the United States, disruptions to supply chains since the COVID-19 pandemic, and evolving industrial diversification strategies are prompting major international groups to seek production platforms closer to European and African markets.

In this evolving context, Morocco’s appeal is significantly enhanced.

The study highlights Chinese investments in the electric battery sector, citing projects such as Gotion High-Tech in Kénitra and CNGR in Jorf Lasfar, as prime examples of this new industrial momentum.

More broadly, the authors contend that Morocco is progressively establishing itself as a « connector state », uniquely positioned to link value chains between Europe, Africa, and Asia, thanks to its political stability, advanced logistical infrastructure, and extensive trade agreements.

+ Economic credibility reassures investors + 

The report further emphasizes that this growing attractiveness is built upon solid macroeconomic fundamentals.

Financial stability, the gradual improvement of public finances, comfortable foreign exchange reserves, and a reduction in sovereign risk collectively bolster confidence among foreign investors.

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

+ The true challenge begins now + 

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

Its authors argue that the current model cannot sustainably rely on ever-increasing public investment.

They identify three significant limitations: mounting public debt, a gradual decline in investment returns, and the persistent difficulties faced by the private sector in stepping up to the plate.

The document notably illustrates that significantly more capital is required today to generate the same unit of growth compared to the early 2000s, signaling a decreasing efficiency of investment.

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

Access to financing continues to be a challenge for many small and medium-sized enterprises (SMEs), competition from the informal sector weighs heavily on their competitiveness, and public investments absorb a growing share of available banking resources, thereby limiting credit accessible to businesses.

This situation hinders the development of a growth model driven more effectively by innovation, productivity gains, and private investment.

+ A fresh perspective on economic transformation + 

Finally, the report puts forth an idea that warrants careful consideration: For a long time, the development of emerging countries was primarily predicated on industrialization.

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

+ Morocco at a pivotal juncture + 

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

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

For the authors, the real challenge now lies in transforming this window of opportunity into sustainable growth through profound reforms across the labor market, the education system, innovation, and the overall business environment.

In essence, Morocco possesses an unprecedented strategic advantage today. The question is no longer merely whether it can attract more investments, but rather whether it can effectively convert its position as a « connector » within the global economy into a genuine catalyst for lasting prosperity.