Morocco to maintain economic lead in North Africa through 2026

Morocco is on track to consolidate its economic rebound, with GDP growth projected to reach 3.1% in 2025 and 3.7% in 2026, according to the World Bank’s Global Economic Prospects, June 2025 report. 

The country’s recovery is being driven by a rebound in agriculture and sustained investment, particularly in infrastructure and green energy, marking a step up from a slower 2.9% expansion in 2024, reflecting Morocco’s resilience in the face of regional and global turbulence.

Inflation, which peaked at 5.2% in 2023, is expected to moderate further to 3.7% by 2025. The report attributes this to easing global commodity prices and tighter domestic monetary policy.

Morocco’s ongoing fiscal consolidation efforts, centered on tax reform and improved public revenue collection, are helping to stabilize public debt levels and reduce vulnerabilities.

These positive indicators position Morocco ahead of several of its North African peers. The World Bank notes that the country faces lower external financing risks than regional counterparts like Egypt or Tunisia, whose fiscal pressures and currency depreciation remain acute.

 Morocco’s focus on climate-resilient infrastructure and renewable energy investments is also highlighted as a strategic advantage in adapting to global transitions.

The North Africa region is expected to grow at a more modest pace, with several countries still grappling with inflation, debt, and sluggish investment flows. Regional growth remains vulnerable to climate shocks, conflict spillovers, and global financial tightening.

Globally, the World Bank forecasts a slight acceleration in economic activity in 2025, but warns of persistent risks. Developing economies face slow growth per capita, high borrowing costs, and constrained fiscal space.

 The report underscores the urgency for structural reforms, better investment climates, and stronger safety nets.

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