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

The growth of Morocco is largely driven by major investments, rather than daily expenses of households.

Major Investments Drive Growth

Investment growth accelerated to 16.3% in 2025, following a significant increase of 14% in 2024.

Infrastructure development projects, particularly those related to the 2030 World Cup preparation, are primarily responsible for this surge.

The construction sector also saw a strong rebound, with growth reaching 6.7%. The Bank of International Settlements noted that private investment has been steadily increasing since the pandemic.

Household spending continued to lag behind, growing only by 1.2% in 2025.

Household Spending Lags Behind

Housing expenses rose by 5.1% in 2025, driven mainly by government initiatives such as expanded social protection, wage increases, and enhanced public services.

Consumer spending, however, was a different story, with growth slowing to 3% in 2024 before dipping to just 1.2% in 2025.

A Shift Expected

The Bank of International Settlements expects a gradual rebalancing of the economy.

With this current cycle of investment expected to mature in the coming years, there should be more room for household consumption and private sector growth.