Morocco’s domestic demand slows, but household spending stays firm

Morocco domestic demand growth lost some momentum in the second quarter of 2026, even as household spending continued to rise. This is a trend closely watched by Moroccans living abroad who are considering investing back home or preparing a return.

Morocco domestic demand growth slows to 5%

According to the Haut-Commissariat au Plan (HCP), domestic demand in Morocco increased by 5% in Q2 2026. Over the same period a year earlier, it had grown by 7.5%.

The contribution of domestic demand to national economic growth reached 5.6 percentage points, compared with 10.3 points a year before. The internal engine of the economy is still running, but at a lower speed.

This slowdown comes in a context where households are still dealing with the lingering effects of previous inflation, while companies are adjusting their investment plans. The HCP’s Q2 2026 economic note provides the full breakdown of these developments.

Household consumption rises, showing resilience

Despite the overall cooling, household final consumption is clearly improving. It rose by 4.1% in the second quarter of 2026, compared with just 1.8% in the same quarter of 2025.

Household spending contributed 2.3 percentage points to growth, versus 1.1 point a year earlier. Moroccan consumers are spending more, especially on day-to-day goods and services.

For Moroccans abroad, this trend sends several signals:

• the ability of families in Morocco to cope with the cost of living;
• the potential of retail, distribution and service sectors;
• the relevance of projects linked to local demand, such as rental housing, small businesses or food services.

Government final consumption expenditure, on the other hand, has slowed slightly. It eased from 4.8% in Q2 2025 to 4.6% in Q2 2026. Its contribution to growth slipped to 0.8 percentage point, from 0.9 point a year earlier.

Investment growth drops sharply

The main warning sign concerns investment. Growth in gross investment fell to 6.8% in the second quarter of 2026, down from 20.3% a year earlier.

This aggregate includes gross fixed capital formation, changes in inventories and net acquisitions of valuable items. Its contribution to economic growth dropped to 2.4 percentage points, from 8.3 points previously.

This weaker investment momentum can weigh on future job creation, housing supply and infrastructure upgrades. These are key factors for Moroccans abroad before making property or business investments, or planning a permanent return.

To refine their reading of the situation, Moroccans overseas can cross-check HCP data with monetary and financial indicators from Bank Al-Maghrib, available on the official website bkam.ma.

What it means for Moroccans investing from abroad

The current pattern shows an economy mainly driven by consumption, with Morocco domestic demand growth slowing and investment losing steam.

For Moroccans abroad, several caution points emerge:

• carefully assess local demand before launching a retail or service business;
• monitor price trends and interest rates for any property project;
• look into sectors supported by public programmes or incentives;
• factor in potentially longer payback periods for productive investments.

In this environment, a step-by-step strategy may be wiser: start with smaller projects, diversify assets and follow regular updates from the HCP and Bank Al-Maghrib.

To support these decisions, Moroccans abroad can also consult Canal212’s practical guide on key procedures for the Moroccan community overseas, including investment, asset transfers and preparing a return home.

For more context, readers can follow Canal212 news for Moroccans abroad.