Morocco’s recent growth surge owes far more to massive public and private investments than to rising household incomes. This imbalance is laid bare in the latest economic assessment by the World Bank.

Mega-projects propel national growth

Investment growth reached 16.3% in 2025, following an already impressive 14% rise in 2024. This acceleration stems primarily from large-scale infrastructure developments, particularly those tied to the 2030 World Cup preparations. Construction activity alone expanded by 6.7%, while private investment shows gradual recovery. Since the pandemic, public investment and spending have consistently outpaced overall economic growth.

Public sector expenditure climbed 5.1% in 2025, driven by expanded social protections, public sector wage increases, and enhanced service delivery.

Households miss out on growth benefits

Private consumption tells a different story. After growing 4.7% in 2023, it slowed to 3% in 2024 and just 1.2% in 2025. While Moroccan families haven’t cut spending, their outlays haven’t kept pace with either investment levels or overall economic expansion. This occurs despite inflation easing to 0.8% in 2025 and improving consumer confidence.

The pattern reveals an economy still heavily reliant on government contracts and large-scale projects, with benefits yet to fully reach ordinary households.

A turning point on the horizon

The World Bank anticipates gradual rebalancing as current investment cycles mature. With inflation expected to remain subdued and real incomes rising, private consumption could accelerate to 4.8% by 2028. Until then, Morocco’s economic engine will continue running at full throttle while household budgets remain stuck in low gear.