Morocco’s economic momentum is being driven primarily by large-scale investments rather than everyday household spending. This is one of the key insights from the latest World Bank economic monitoring report for the country.

Major infrastructure projects fuel growth

Investment in Morocco expanded by 16.3% in 2025, following a robust 14% increase the previous year. This acceleration stems largely from public infrastructure projects, particularly those tied to preparations for the 2030 FIFA World Cup.

The construction sector saw growth of 6.7%, while private investment has been gradually recovering since the pandemic. Notably, both public spending and investment have consistently outpaced nominal GDP growth in recent years.

Public sector expenditure rose by 5.1% in 2025, driven by expanded social welfare programs, public sector wage increases, and enhanced public services.

Households lag behind the 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 is rising far more slowly than either investment or overall economic output.

This slowdown is occurring despite inflation easing to 0.8% in 2025 and early signs of improving consumer confidence. The gap highlights an economy still heavily reliant on public contracts and large-scale projects, with limited trickle-down benefits for ordinary families.

A potential shift on the horizon

The World Bank anticipates a gradual rebalancing. As the current investment cycle matures in the coming years, private consumption and the broader private sector are expected to gain greater 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 economy will continue to sprint ahead faster than the spending power of its households.