Morocco Could Add 1.7 Million Jobs and Boost GDP by 20% by 2035, World Bank Maps Reform Pathway

Morocco stands on the brink of a major economic transformation that could generate 1.7 million additional jobs by 2035 and lift real GDP by nearly 20 percent above current projections, according to two major reports released by the World Bank Group.

The Morocco Growth and Jobs Report and the Country Private Sector Diagnostic (CPSD)—developed in close collaboration with the Moroccan government—outline a comprehensive reform agenda aimed at shifting the country from steady growth to a more dynamic, job-rich economic model.

Growth without enough jobs: a structural challenge

While Morocco has achieved notable economic progress over the past two decades, job creation has lagged significantly behind population growth.

Between 2000 and 2024:

• The working-age population grew nearly 2.5 times faster than employment

• 40 percent of industries operate under limited competition, constraining productivity

• Women’s labour force participation remains among the lowest globally, despite higher education levels

These structural imbalances have resulted in persistent unemployment—particularly among youth and women—highlighting the urgent need for reforms that translate growth into inclusive job creation.

A roadmap for transformative growth

The Growth and Jobs Report identifies four key reform pillars that could unlock Morocco’s full economic potential:

• More competitive and efficient markets: Reducing barriers to entry and strengthening competition

• More dynamic firms: Supporting business growth, innovation, and productivity

• More impactful public investment: Improving efficiency and targeting of government spending

• More inclusive labour markets: Expanding opportunities for women and young people

If implemented effectively, these reforms could not only deliver 1.7 million jobs by 2035 but also 2.5 million jobs by 2050, fundamentally reshaping Morocco’s economic trajectory.

“Morocco has built a strong foundation—and with the right reforms, it can go even further, generating millions of jobs and unlocking opportunities for women and youth,” said Ahmadou Moustapha Ndiaye, World Bank Division Director for the Maghreb and Malta.

Unlocking private investment in high-growth sectors

Complementing the macroeconomic roadmap, the CPSD identifies concrete opportunities to catalyse private investment in four high-potential sectors:

• Decentralised solar power generation

• Low-carbon textiles and sustainable manufacturing

• Argan-based cosmetics and value-added agriculture

• Marine aquaculture

These sectors align closely with Morocco’s strategic priorities, including green growth, industrial upgrading, and regional development. However, investment levels remain below potential due to regulatory and administrative bottlenecks.

$7.4 billion investment potential within reach

The report estimates that targeted reforms could unlock approximately $7.4 billion in private investment and create over 166,000 jobs in these sectors within the next 5 to 10 years.

Key barriers identified include:

• Complex and slow administrative procedures

• Unclear or restrictive regulatory frameworks

• Limited access to land and green energy

• Skills gaps in emerging industries

To address these challenges, the World Bank recommends:

• Streamlining and digitalising permitting processes

• Clarifying sector-specific regulations

• Improving access to infrastructure and energy

• Strengthening standards, traceability, and workforce skills

“Morocco is ready for the next level of private sector engagement,” said Cheick-Oumar Sylla, IFC Division Director for North Africa and the Horn of Africa. “These reforms could mobilise private investment equivalent to around 4 percent of GDP.”

Bridging policy ambition and real outcomes

The reports emphasise that Morocco’s challenge is not a lack of economic potential, but the need to convert that potential into tangible outcomes through coordinated reforms.

By linking macroeconomic policy changes with sector-specific investment opportunities, the World Bank is promoting an integrated approach—one that connects government strategy with private sector execution.

A long-standing development partnership

The initiative builds on more than 65 years of collaboration between Morocco and the World Bank Group, spanning financing, technical assistance, and policy advisory support.

Officials say the latest reports represent a new phase in that partnership—focused on delivering inclusive growth that benefits all segments of society.

A pivotal moment for Morocco’s economy

As Morocco navigates global economic uncertainty and domestic structural challenges, the findings offer a clear message: transformative growth is within reach—but only if reforms are accelerated.

With the right policy choices, the country could not only boost GDP and attract investment but also tackle one of its most pressing challenges—creating meaningful, sustainable jobs for its growing population.