Morocco’s economy surges while household spending lags behind
Morocco’s economy achieved its strongest growth in nearly a decade during 2025, with GDP expanding by 4.9%. However, this impressive figure masks a stark disparity: while investment soared by 16.3%, household consumption barely budged, rising just 1.2%.
The recent economic momentum in Morocco stems primarily from large-scale investments rather than everyday consumer spending. This imbalance is highlighted in the latest World Bank economic assessment for the country.
Major infrastructure projects drive growth
Investment surged by 16.3% in 2025, following a 14% increase in 2024. This acceleration is largely attributed to significant public infrastructure developments, particularly those tied to preparations for the 2030 FIFA World Cup.
The construction sector expanded by 6.7%, while private investment gradually recovered. Since the pandemic, public consumption and investment have consistently outpaced nominal GDP growth.
Public spending rose by 5.1% in 2025, driven by expanded social protections, wage increases, and enhanced public services.
Households see minimal financial relief
Private consumption growth slowed dramatically from 4.7% in 2023 to 3% in 2024, then further to just 1.2% in 2025. While families haven’t cut back on spending, their outlays have lagged far behind economic and investment growth.
This stagnation persists despite inflation cooling to 0.8% in 2025 and improving consumer confidence. The data suggests Morocco’s growth remains heavily dependent on public contracts and large-scale projects, with limited trickle-down benefits for ordinary households.
A gradual shift on the horizon
The World Bank anticipates a progressive rebalancing as current investment cycles mature over the coming years, potentially giving consumption and private sector activity a stronger boost. With inflation expected to continue easing and real incomes rising, private consumption growth could reach 4.8% by 2028. Until then, Morocco’s economic engine will continue running ahead of household purchasing power.
