Morocco’s economy is expected to remain broadly resilient in 2026, supported by domestic demand, agricultural recovery and structural reforms, even as global geopolitical tensions and higher energy prices weigh on the wider region, the World Bank said.
In its Middle East, North Africa, Afghanistan and Pakistan (MENAAP) Economic Update, the World Bank forecast growth of 4.2 percent for Morocco in 2026, slightly down by 0.2 percentage points from its previous projection due to external shocks.
The report said Morocco continues to show stronger resilience than many regional peers, despite rising global uncertainty linked to geopolitical tensions in the Middle East and volatile energy markets.
“As a net energy importer, Morocco is exposed to elevated oil and gas prices,” the report noted, adding that higher costs are affecting trade balances and production expenses.
However, the impact is described as manageable compared with more vulnerable economies in the region, particularly oil-dependent states.
More Read
The World Bank also projected inflation in Morocco to rise moderately to 2.4 percent in 2026, up from 0.8 percent in 2025, driven mainly by global price pressures rather than domestic demand overheating.
It said Morocco’s macroeconomic fundamentals remain stable, supported by diversified economic activity and continued reform efforts.
Agriculture is expected to play a key stabilising role in 2026, helping offset volatility in other sectors and supporting rural employment and consumption.
The report highlighted that structural reforms and public-private partnerships have helped strengthen economic resilience and sustain job creation.
Across the broader MENAAP region, excluding Iran, growth is projected to slow sharply from 4.0 percent in 2025 to 1.8 percent in 2026, reflecting weaker performance in Gulf Cooperation Council economies and Iraq.
The World Bank warned that risks remain tilted to the downside at the regional level, particularly if geopolitical tensions persist or escalate further.
However, it noted that Morocco’s diversified economic base provides a buffer against external shocks, unlike more hydrocarbon-dependent economies in the region.
The institution added that Morocco’s experience illustrates how reform-driven growth strategies can help sustain stability even in a challenging global environment.
Analysts say the outlook underscores Morocco’s position as one of the more resilient economies in North Africa, supported by consistent policy direction and sectoral diversification.
More Read
If current trends continue, Morocco is expected to maintain steady medium-term growth while managing inflationary pressures linked to global commodity markets.
