Morocco’s economy accelerates, household savings lag behind

The Moroccan economy has recorded its strongest growth since nearly a decade in 2025, but beneath the progress of 4.9% GDP appears a significant gap: investment surged by 16.3%, while household consumption only rose by 1.2%.

The growth momentum is largely driven by large investments, much less by everyday expenses for households. This is one of the conclusions of the latest Economic Situation Report published by the World Bank.

Big projects drive the growth

Investment rose by 16.3% in 2025, after a significant increase of 14% in 2024. This acceleration is mainly linked to large public infrastructure projects, particularly those related to the preparation for the 2030 World Cup.

Construction recorded a growth of 6.7%. The World Bank also noted a progressive recovery of private investments. Since the pandemic, investment and public consumption have consistently outpaced nominal GDP growth.

Households remain behind

Household spending, on the other hand, is taking a very different path. It had grown at 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 overall economy. This slowdown occurs despite a drop in inflation to 0.8% in 2025 and an improvement in household confidence.

A turning point expected after big 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 drop in inflation and improved real incomes, household consumption could reach 4.8% by 2028. In the meantime, big projects will continue to drive the Moroccan economy much faster than household savings.