The Moroccan economic rebound in 2025 was primarily fueled by substantial public and private investments rather than a broad-based rise in household spending. This imbalance is highlighted in the latest economic monitoring report compiled by the World Bank.

Mega-projects drive economic momentum

Investment growth reached 16.3% in 2025, following a robust 14% surge in 2024. This exceptional performance stems largely from major public infrastructure initiatives, particularly those tied to preparations for the 2030 FIFA World Cup. Construction activity alone expanded by 6.7%, while private investment showed signs of gradual recovery after pandemic-era disruptions.

Public expenditure continued its upward trajectory, climbing 5.1% in 2025. This increase reflects expanded social protection programs, adjusted public sector salaries, and enhanced public service delivery. Since the health crisis, investment and government consumption have consistently outpaced nominal GDP growth.

Household spending remains sluggish despite improving conditions

Private consumption growth decelerated sharply from 4.7% in 2023 to 3% in 2024, then to just 1.2% in 2025. The slowdown occurred despite inflation cooling to 0.8% and consumer confidence indicators turning positive. This suggests that economic recovery has yet to translate into meaningful improvements for household purchasing power.

The data reveals an economy still heavily reliant on state-led initiatives and large-scale projects, with limited trickle-down effects reaching ordinary Moroccan families.

Looking ahead to balanced growth

Economic analysts anticipate a gradual rebalancing in coming years. As current investment cycles mature, analysts expect household consumption to accelerate, particularly as inflationary pressures continue to ease and real incomes improve. Projections suggest private consumption could expand by 4.8% annually by 2028, though the near-term trajectory will likely remain uneven.