The country’s economic momentum is being driven by major infrastructure projects rather than everyday household spending. This disparity is highlighted in the latest economic assessment by international financial institutions.

Massive infrastructure projects fuel growth

Investment surged by 16.3% in 2025, following a 14% increase the previous year. This surge is largely attributed to large-scale public infrastructure initiatives, particularly those tied to preparations for the 2030 FIFA World Cup.

Construction activity alone expanded by 6.7%, while private investment has shown signs of gradual recovery since the pandemic. Public spending and investments have consistently outpaced nominal GDP growth in recent years.

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

Households feel left behind

Private consumption tells a different story. After growing by 4.7% in 2023, household spending slowed to 3% in 2024 and further to just 1.2% in 2025.

While inflation eased to 0.8% last year and consumer confidence began to recover, household spending has not kept pace with the broader economic expansion. The disparity underscores an economy still heavily reliant on public contracts and large-scale developments, with limited trickle-down benefits for ordinary families.

A shift on the horizon?

Analysts anticipate a gradual rebalancing as the current investment cycle matures over the coming years, potentially allowing household consumption to catch up. 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 to outpace the spending power of its households.