Economic expansion in Morocco is being driven primarily by large-scale investments rather than everyday household spending. This disparity is highlighted in the latest economic monitoring report on the country.

Major infrastructure projects fuel growth

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

Construction activity alone grew by 6.7%, while the World Bank also notes a gradual recovery in private investment. Since the pandemic, public spending and investment have consistently outpaced nominal GDP growth.

Public sector expenditures rose by 5.1% in 2025, driven by expanded social protections, wage increases, and enhanced public services.

Households lag behind economic momentum

Private consumption tells a different story. After growing by 4.7% in 2023, household spending slowed to 3% in 2024 and then to just 1.2% in 2025.

While households haven’t cut back, their spending is expanding far more slowly than investment and overall economic activity. This slowdown occurs despite inflation easing to 0.8% in 2025 and improving consumer confidence.

The situation underscores an economy still heavily reliant on public contracts and large-scale projects, with benefits yet to fully reach Moroccan families.

A gradual shift expected after major works

Analysts anticipate a gradual rebalancing in the coming years. As the current investment cycle matures, private consumption and business activity are likely to gain traction.

With inflation projected to decline further and real incomes rising, private consumption growth could reach 4.8% by 2028. Until then, Morocco’s economy will continue to advance at a pace far exceeding household spending growth.