The Moroccan economy has recorded its strongest growth in nearly a decade in 2025. However, behind the progress of 4.9% GDP growth, an important gap appears: investment has surged by 16.3%, while household consumption has only increased by 1.2%.

The growth of Morocco is largely driven by large investments, much less than daily expenses of households. This is one of the conclusions of the latest Economic Situation Report in Morocco published by the World Bank.

Large Projects Drive Growth

Investment has risen by 16.3% in 2025, following a significant increase of 14% in 2024. This acceleration is mainly linked to large public infrastructure projects, particularly those undertaken as part of the preparation for the 2030 World Cup.

The construction sector has seen a growth of 6.7%. The World Bank also notes a progressive recovery of private investments. Since the pandemic, investments and public consumption have systematically outpaced nominal GDP.

Households Remain in Retreat

Household consumption is following a very different trajectory. Its growth had reached 4.7% in 2023, before slowing down to 3% in 2024 and only 1.2% in 2025.

Households have not reduced their expenses, but they have progressed much less rapidly than investments and the entire economy. This slowdown occurs despite a decline in inflation to 0.8% in 2025 and an improvement in household confidence.

The Turning Point Expected After Large Projects

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

With the expected decline in inflation and improved real incomes, household consumption could reach 4.8% by 2028. Until then, large projects will continue to drive Morocco’s economy much faster than household pockets.