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.
Morocco's economic resilience is commendable, and the country's growth momentum is real. Sustaining and broadening these gains will require a deliberate push to unlock new sources of productivity. Digital transformation is the most powerful lever available — and Morocco has both the ambition and the foundation to make it work.
The report's special focus shows that while Moroccan firms have made real progress in adopting digital tools, fewer than one in five currently make intensive, integrated use of advanced technologies — such as enterprise software, customer management platforms, or e-commerce tools. Deepening this adoption represents a significant opportunity. Firms that move toward more intensive digital use achieve productivity gains of up to 70 percent, grow employment 10 percent faster, and pay wages roughly 27 percent higher on average. Closing Morocco's digital gap to the level of peer countries could raise aggregate productivity by 10 to 15 percent.
