The World Bank has said that regulatory reforms introduced in Morocco to stimulate private sector activity are “deeper than expected” and could help accelerate economic growth, reduce the size of the informal economy, and support job creation.
In its updated Global Economic Prospects report, released in Washington, the World Bank Group noted that the reforms are already improving the overall business environment in the Kingdom, creating more favorable conditions for private investment.
The report also pointed to a recovery in Morocco’s agricultural output, attributing the improvement to more favorable weather conditions after previous periods of volatility that weighed on farm production.
Morocco’s external position has shown signs of improvement as well, with the World Bank highlighting stronger current account balances. This progress was driven in part by higher remittances from Moroccans living abroad and a rebound in tourism revenues.
On public finances, the World Bank expects budget deficits in oil-importing countries, including Morocco, to narrow over the 2026–2027 period. According to the report, this trend reflects the impact of “contractionary policies” adopted by governments, particularly in Morocco, to rein in spending and stabilize fiscal balances.
In terms of economic growth, the World Bank projects that Morocco’s economy will expand by an average of 4.4 percent in 2026. However, the institution cautioned that growth in agriculture and manufacturing is expected to be weaker, alongside more moderate employment gains.
At the global level, the World Bank forecasts that economic growth will slow slightly to 2.6 percent in 2026, before picking up to 2.7 percent in 2027, signaling a period of stabilization over the next two years.
The latest projections represent an upward revision compared with the World Bank’s previous forecasts published in June, reflecting improved outlooks in several regions, including North Africa.
