Regulatory reforms implemented in Morocco to promote private sector activity—described as “deeper than expected”—could stimulate growth, reduce the informal economy, and create employment, according to the World Bank Group’s updated Global Economic Prospects report released in Washington.
The international financial institution notes that favorable weather conditions contributed to agricultural production recovery in the Kingdom. Current account balances also improved, partly due to increased remittances and tourism revenues.
Addressing budget deficits in oil-importing countries including Morocco, the World Bank estimates these deficits should decrease in 2026-2027, partly due to “restrictive policies” implemented, notably in the Kingdom.
Regarding growth, the report projects an average 4.4% for Morocco in 2026, with weaker expansion in agricultural and manufacturing sectors alongside more moderate employment growth. Globally, the World Bank forecasts growth should slightly decline to 2.6% in 2026 before rising to 2.7% in 2027, marking stabilization over the next two years. These forecasts represent upward revisions compared to previous projections published in June.
The Bank’s assessment underscores Morocco’s reform trajectory as a model for emerging economies seeking to balance fiscal discipline with growth objectives. The regulatory framework changes target barriers that historically constrained private investment and entrepreneurship, potentially unlocking productivity gains across multiple sectors.
However, the projected agricultural and manufacturing slowdown suggests structural challenges persist despite reform progress. Employment growth moderation indicates labor market adjustments may lag behind overall economic expansion, necessitating continued policy attention to job creation mechanisms.
The improved current account position reflects Morocco’s diversified revenue sources, with tourism and remittances providing resilience against external shocks. These inflows support foreign exchange stability while financing development priorities, though dependence on cyclical sectors presents ongoing vulnerabilities requiring careful macroeconomic management.
