Morocco’s economic rebound in 2025 was driven predominantly by large-scale investments rather than everyday household spending. This gap highlights a critical imbalance in the country’s growth trajectory, as outlined in the latest World Bank economic assessment for Morocco.

Mega-projects fuel economic acceleration

Investment in Morocco skyrocketed by 16.3% in 2025, following a robust 14% increase the previous year. This surge is largely attributed to major public infrastructure initiatives, particularly those tied to preparations for the 2030 World Cup. The construction sector alone grew by 6.7%, while private investment has shown signs of gradual recovery since the pandemic era.

Public spending also played a pivotal role, rising by 5.1% in 2025. This uptick stems from expanded social protection programs, public sector wage hikes, and enhanced public services.

Households feel left behind

Private consumption, however, has followed an entirely different path. After growing by 4.7% in 2023, household spending slowed to 3% in 2024 and then plummeted to just 1.2% in 2025. This sluggish performance occurred despite a significant drop in inflation to 0.8% and a gradual improvement in consumer confidence.

The data reveals a troubling trend: Morocco’s economic growth remains overly reliant on public-sector projects and large-scale initiatives. The benefits of this expansion have yet to trickle down significantly to the average Moroccan household.

A turning point on the horizon

Economists anticipate a gradual rebalancing in the coming years. As the current investment cycle matures, private consumption and business activity are expected to gain momentum. With inflation projected to remain subdued and real incomes rising, household spending could accelerate to 4.8% by 2028. Until then, Morocco’s economy will continue to outpace the growth of its citizens’ wallets.