Morocco economy growth investment household consumption 2025

Moroccan growth is largely driven by major investments, much less so by households’ daily spending. This is one of the findings from the latest Report on monitoring the economic situation in Morocco published by the World Bank.

Major projects drive growth

Investment advanced 16.3% in 2025, following an already very high increase of 14% in 2024. This acceleration is mainly linked to major public infrastructure projects, particularly those undertaken as part of preparations for the 2030 World Cup.

Construction thus recorded growth of 6.7%. The World Bank also notes a gradual recovery in private investments. Since the pandemic, investments and public consumption have systematically progressed faster than nominal GDP.

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Public administration spending increased further by 5.1% in 2025. This increase is explained notably by the expansion of social protection, salary increases, and strengthening of public services.

Households lag behind

Private consumption follows a very different trajectory. Its growth had reached 4.7% in 2023, before slowing to 3% in 2024 and then to just 1.2% in 2025.

Households have not reduced their spending, but it has progressed much more slowly than investments and the overall economy. This slowdown occurs despite inflation falling to 0.8% in 2025 and household confidence beginning to recover.

The situation reveals growth still heavily dependent on public spending and major projects. The spillovers from this dynamic are not yet translating into comparable acceleration in consumption by Moroccan families.

The turning point expected after major projects

The World Bank expects a gradual rebalancing. The current investment cycle should reach maturity in the coming years, leaving more room for consumption and the private sector.

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With expected inflation decline and improvement in real incomes, private consumption growth could reach 4.8% by 2028. Until then, major projects will continue to advance Morocco’s economy much faster than household wallets.