Morocco’s economic rebound is being driven primarily by massive public investments rather than everyday household spending. This imbalance was highlighted in the latest World Bank economic assessment for the Kingdom.

Mega-projects propel economic expansion

Nationwide investment jumped 16.3% in 2025, following a 14% increase the previous year. This acceleration stems largely from major public infrastructure projects, particularly those tied to preparations for the 2030 FIFA World Cup. Construction activity alone grew by 6.7% during the year.

The World Bank also notes a gradual recovery in private investment since the pandemic. Public spending and investment have consistently outpaced nominal GDP growth over recent years.

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

Households feel left behind

Private consumption growth has followed a markedly different path. After expanding 4.7% in 2023, it slowed to 3% in 2024 and just 1.2% in 2025. While households haven’t cut back spending, their expenditures are growing at a fraction of the economy’s overall expansion.

This slowdown occurs despite inflation easing to 0.8% in 2025 and improving consumer confidence indicators. The data suggests Morocco’s growth remains heavily dependent on public contracts and large-scale construction projects, with limited trickle-down benefits for ordinary families.

Looking ahead to a more balanced recovery

The World Bank anticipates a gradual rebalancing in coming years. As current investment cycles mature, more space should open for private consumption and business activity.

With inflation projected to remain subdued and real incomes expected to rise, private consumption growth could accelerate to 4.8% by 2028. Until then, Morocco’s economic engine will continue running ahead of household wallets.