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

Megaprojects fuel economic expansion

Investment growth reached 16.3% in 2025, following a 14% rise in 2024. This acceleration stems largely from major public infrastructure initiatives, particularly those tied to preparations for the 2030 World Cup.

The construction sector expanded by 6.7%, while private investment has shown gradual recovery since the pandemic. Over the past few years, public spending and investments have consistently outpaced nominal GDP growth.

Households fall behind in economic rebound

Private consumption tells a different story. After growing by 4.7% in 2023, it slowed to 3% in 2024 and further to just 1.2% in 2025. While households haven’t cut back, their spending has failed to keep pace with the broader economy’s growth trajectory.

This sluggishness persists despite falling inflation—down to 0.8% in 2025—and improving consumer confidence. The data underscores an economy still heavily reliant on public contracts and large-scale projects, with limited spillover into everyday household budgets.

A turning point on the horizon

The World Bank anticipates a gradual rebalancing as the current investment cycle matures. With inflation expected to remain subdued and real incomes rising, private consumption could accelerate to 4.8% by 2028. Until then, Morocco’s economic engine will continue to outpace the growth in household spending.