Maroc economy accelerates, household savings lag

The Moroccan economy has recorded its strongest growth since nearly a decade in 2025. However, behind the progress of 4.9% GDP growth appears an important divergence: 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, far less by daily expenses of households. This is one of the conclusions drawn from 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 previous surge of 14% in 2024. This acceleration is primarily linked to large public infrastructure projects, particularly those undertaken within the context of the 2030 World Cup preparations.

The construction sector recorded a growth rate of 6.7%. The World Bank also notes a gradual recovery of private investments. Since the pandemic, investments and household spending have consistently outpaced nominal GDP growth.

On Bladi.net: Summer expenses: how MREs boost Morocco’s economy

Government expenditure continued to increase by 5.1% in 2025. This rise is mainly due to the expansion of social protection, salary hikes and enhanced public services.

Households lag behind

Household consumption follows 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 those 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 situation reveals an economy still heavily dependent on public demand and large projects. The benefits of this dynamic have not yet translated into comparable acceleration of household consumption.

Turning point expected after big projects

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

On Bladi.net: Morocco: The economy’s salvation lies in fields

In anticipation of 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 more rapidly than household savings.