The World Bank's latest 'Economic Monitoring Report for Morocco,' released in July 2026, projects real GDP growth of 4.9% for the year. The report, produced by the MENA unit of the World Bank's Economic Policy Department, highlights strong macroeconomic performance driven by agriculture, exports, and tourism recovery.
However, the report notes that this growth has not translated into tangible improvements for Moroccan households. Inflation, though moderating from 2025 peaks, remains elevated at around 3.2% in mid-2026, eroding purchasing power. Unemployment, particularly among youth (15-24 years), stands at 22.5%, according to the report's data.
The World Bank attributes the disconnect between GDP growth and household welfare to structural issues: low labor force participation (45%), a large informal sector (estimated at 60% of employment), and persistent regional inequalities. The report recommends policies to boost private sector job creation, improve education-to-employment transitions, and strengthen social protection.
Morocco's fiscal deficit is projected to narrow to 4.1% of GDP in 2026, down from 4.8% in 2025, supported by tax reforms and subsidy rationalization. Public debt remains high at 72% of GDP, but the report considers it sustainable given the country's access to international markets and continued donor support.
