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RABAT, July 23, 2026 — Morocco's economy is growing at its fastest pace in over ten years, buoyed by a surge in infrastructure investment and an agricultural rebound, according to a new World Bank report released today. The Morocco Economic Update summer 2026 edition, Cementing Growth — Digital Transformation as a Productivity Impulse, shows that while the macroeconomic foundations are solid, the country's next great leap in productivity will depend on how deeply — and how broadly — its businesses embrace advanced digital technologies.
Real GDP growth reached an estimated 4.9 percent in 2025, the strongest performance in a decade, driven by a surge in public investment linked to the preparations for the 2030 FIFA World Cup and a nascent recovery in agriculture. Yet newly released labor statistics offer a more sobering picture of the country's untapped potential, with broader measures of labor underutilization reaching 22.5 percent.
Inflation fell sharply to just 0.8 percent, easing the pressure on households and businesses that had built up in previous years. The government also made significant progress on its finances, narrowing the budget deficit to 3.5 percent of GDP, and Morocco's sovereign credit rating was recently upgraded to investment grade by Standard & Poor's.
Growth is projected to remain solid at 4.2 percent in 2026, supported by continued investment and domestic demand. However, headwinds remain, including the impact of the conflict in the Middle East on energy import costs and freight prices, with an estimated drag of 0.8 percentage points on Morocco's pre-conflict growth. Over the longer term, recurrent drought poses a continued risk to agricultural output and water-dependent sectors. Morocco's growth also remains sensitive to the pace of economic recovery among its main European trading partners. Domestically, structural labor market challenges persist, particularly the low participation of women in the workforce.
Nicholas Keyes
Meryam Benjelloun
About The World Bank
The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global challenges. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
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