Morocco’s economy surges while household wallets lag behind

The Moroccan economy has achieved its strongest growth in nearly a decade, with GDP expanding by 4.9% in 2025. Yet behind these impressive figures lies a stark imbalance: while investment soared by 16.3%, household consumption grew by just 1.2%.

Public spending and infrastructure drive expansion

The surge in investment—up 16.3% in 2025 after a 14% rise in 2024—stems largely from major public works, including preparations for the 2030 FIFA World Cup. Construction activity alone grew by 6.7%, while private investment has shown gradual recovery since the pandemic. Public sector spending rose by 5.1%, driven by expanded social protections, wage increases, and enhanced public services.

Household spending fails to keep pace

Private consumption, which grew by 4.7% in 2023, slowed to 3% in 2024 and just 1.2% in 2025. Though inflation eased to 0.8% and consumer confidence is improving, household spending remains far behind the broader economic expansion. This disparity highlights an economy still heavily reliant on state-led projects rather than organic household demand.

A shift on the horizon

Projections suggest a gradual rebalancing. As current investment cycles mature, private consumption and business activity are expected to gain momentum. With inflation stabilizing and real incomes rising, household spending could accelerate to 4.8% by 2028. Until then, Morocco’s growth story will continue to be written more by grand projects than by everyday spending.