Driven largely by monumental public investment rather than everyday spending, Morocco’s economic expansion reflects a widening gap between macroeconomic performance and household welfare. This trend is highlighted in the latest World Bank economic monitoring report for Morocco.

Mega-projects propel growth

Investment in Morocco soared by 16.3% in 2025, following a 14% rise in 2024. This surge is primarily attributed to large-scale infrastructure initiatives, particularly those tied to Morocco’s preparations for the 2030 FIFA World Cup. The construction sector alone grew by 6.7%, while private investment has shown gradual recovery since the pandemic era.

Public spending has also climbed steadily, expanding by 5.1% last year. This increase stems from expanded social protection programs, public sector wage hikes, and enhanced public services.

Household spending remains sluggish

Private consumption growth tells a different story. After rising 4.7% in 2023, it slowed to 3% in 2024 and further decelerated to just 1.2% in 2025. While households have not cut back on spending, their expenditures have grown at a fraction of the pace seen in investment and overall economic output.

This slowdown occurs despite inflation easing to 0.8% in 2025 and early signs of improving consumer confidence. The data underscores an economy still heavily reliant on government-led projects, with benefits yet to fully reach Moroccan families.

A turning point on the horizon

The World Bank anticipates a gradual rebalancing in the coming years. As the current investment cycle matures, private consumption and business activity are expected to gain momentum. With inflation projected to stay low and real incomes rising, private consumption growth could accelerate to 4.8% by 2028. Until then, Morocco’s economic engine will continue to outpace the spending power of its households.