Casablanca – Morocco’s medium-term economic outlook remains strong, with real GDP expected to grow by 4.3% “in the medium term,” despite the impact of the conflict in the Middle East, according to Ousmane Dione, the World Bank’s Vice President for the Middle East, North Africa, Afghanistan, and Pakistan.
Speaking in an interview with MAP, Dione said Morocco is coming off its strongest growth cycle in more than a decade. He said this year’s regional conflict is expected to reduce growth by around 0.8 percentage points, but the country’s overall outlook remains positive.
Investment is expected to remain the main engine of growth in the short term. Investment spending is projected to increase by 11.2% in 2026, supported by major infrastructure projects and preparations for the 2030 FIFA World Cup.
Over the medium term, Dione said private consumption should play a bigger role in supporting domestic demand. It is expected to grow by more than 4%, helped by easing inflation and improving consumer confidence. He also pointed to a recovery in agriculture, resilient tourism, and strong mining exports as additional factors supporting economic activity.
He said Morocco will still need to address several structural challenges to maintain this trajectory. These include water scarcity and climate pressures, labor market weaknesses, higher energy import costs, and fiscal risks linked to continued sale-and-leaseback operations as well as potential liabilities from state-owned enterprises and public-private partnerships.
Dione also said digital transformation could significantly improve productivity, estimating that fully using digital technologies could raise overall productivity by between 10% and 15%.
He added that Morocco has made notable progress in public financial management, citing the 2024 Public Expenditure and Financial Accountability assessment. According to Dione, the evaluation showed stronger budget reliability, more disciplined budget execution, and greater integration of gender and climate considerations into public planning.
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His comments come shortly after the World Bank and the Moroccan government launched a new Country Partnership Framework covering 2026 to 2035.
The 10-year strategy is built around three priorities, including private sector job creation, stronger human capital, and inclusive, resilient development aligned with Morocco’s New Development Model.
Dione said the framework aims to help create more than 1.7 million additional jobs by 2035 through reforms that strengthen competition, encourage private investment, and improve labor market inclusion.
It also supports reforms in education, healthcare, universal health coverage, social protection, and retirement coverage, while expanding connectivity through transport, digital services, and energy infrastructure to reduce regional disparities. He said the framework focuses on measurable results and more targeted support for Morocco’s long-term development priorities.
