Morocco’s economic rebound is being driven primarily by large-scale investments rather than everyday household spending. This disparity is highlighted in the latest World Bank Economic Monitoring Report for Morocco.

Major projects propel economic expansion

Investment in Morocco jumped by 16.3% in 2025, following a robust 14% increase in 2024. This surge is largely attributed to massive public infrastructure initiatives, particularly those tied to the 2030 FIFA World Cup preparations. The construction sector alone expanded by 6.7%, while private investment has shown signs of gradual recovery since the pandemic. Public spending and private investment have consistently outpaced nominal GDP growth in recent years.

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

Households feel the squeeze

Private consumption tells a different story. After growing by 4.7% in 2023 and 3% in 2024, household spending slowed dramatically to just 1.2% in 2025. While families haven’t cut back, their spending has failed to keep pace with the broader economic expansion—despite inflation easing to 0.8% and improving consumer confidence.

This divergence underscores Morocco’s growth model, which remains heavily reliant on public contracts and large-scale projects. The benefits of this economic momentum have yet to fully translate into stronger household budgets.

The shift toward balanced growth

Analysts anticipate a gradual rebalancing as the current investment cycle matures. The World Bank projects that private consumption could accelerate to 4.8% by 2028, supported by lower inflation and rising real incomes. Until then, Morocco’s economic engine will continue to outpace the financial well-being of its households.