Date: 13/01/2026
Analysis: AIT-EZZI Younes
In its semi-annual report issued in Winter 2025, the World Bank sheds light on a complex economic equation facing Morocco: modest growth (3.2%), a recovery in investment and exports, yet countered by a deep structural deficit in job creation and pressing environmental and social challenges. The report, titled “Prioritizing Reforms to Boost the Business Environment,” acts as a mirror reflecting the reality of the Moroccan economy. However, a careful reading between the lines reveals a gap between the precision of the diagnosis and the generality of the prescription.
The Economic Pulse: A Fragile Recovery Amid Recurrent Drought
The report begins by diagnosing the current situation: persistent drought is stifling the agricultural sector (-4.6% growth in 2024), but industrial sectors (driven by phosphates and automobiles) and investment (particularly foreign direct investment) are rescuing overall growth from decline. Herein lies the first paradox: the economy is improving in macroeconomic indicators (the balance of payments deficit has decreased, inflation is under control), yet the ordinary citizen does not feel this improvement. The unemployment rate remains high (13.3%), and labor force participation continues to decline steadily.
The root cause, as the report explains, is the “structural job creation gap.” Over the past decade, the working-age population grew by over 10%, while employment increased by only 1.5%. This is not merely a cyclical crisis but a dysfunction in the productive economic fabric.
The Main Prescription: Reforming the Business Environment Through the “B-Ready” Lens
Here, the World Bank introduces its new diagnostic tool “B-Ready,” which replaced the famous “Doing Business” index. The result? A mixed picture for Morocco:
· Strength: Morocco outperforms countries with similar income levels in the quality of its “regulatory framework” (the laws themselves).
· Critical Weakness: It lags behind them in “operational efficiency,” meaning the state’s ability to implement these laws effectively and transparently.
This analysis yields three reform priorities:
1. Labor Market: A rigid system that heavily protects workers “inside” the formal sector (Insiders) but raises the cost of formal hiring to the point of pushing companies into the informal economy, thereby creating an army of workers “outside” any social protection (Outsiders).
2. Commercial Justice: Slowness and complexity in dispute resolution procedures, along with a lack of transparency and digitization, increase risks for investors and prolong conflicts.
3. Insolvency Procedures: An incomplete legal framework makes rescuing or liquidating struggling companies a long and complex process, hindering the reallocation of capital to more productive activities.
Between Diagnosis and Implementation: Gaps in the Prescription
Despite the accuracy of this diagnosis, several critical questions emerge regarding the World Bank’s recommendations:
· Are the reforms “neutral”? The focus on labor market flexibility and reducing hiring costs could clash with the strong interests of unions and stable workers, and would require a parallel package of social protection for precarious workers.
· Where is the state’s developmental role? The report’s recommendations implicitly favor a model focused on improving the supply side (business environment), while relatively neglecting the role of demand-side policies (such as increasing public sector wages to stimulate consumption) or the state’s direct investment role in the major infrastructure projects Morocco is implementing.
· The localization challenge: How can Morocco translate general recommendations like “improving judicial efficiency” into a practical action plan that considers the specificities of the Moroccan legal and institutional system, and its human and material capacities?
· The broader context is missing: The report touches on the impact of drought but does not present a comprehensive economic vision for transforming the climate challenge into real investment opportunities in green energy and smart agriculture.
Conclusion: The Way Forward
The World Bank report provides a clear roadmap for the necessary regulatory reforms. Their success will depend on the ability of the Moroccan government and society to “localize” these recommendations, integrate them into the framework of the national “New Development Model,” and balance them with urgent social priorities such as supporting vulnerable groups and creating opportunities for youth and women. The most difficult equation is not knowing what to reform, but how to implement it without sparking social tensions, in a way that achieves economic growth that is not merely a statistical figure, but translates into decent jobs and tangible well-being for the citizen.
The report concludes with a balanced assessment of risks, but the implicit message is clear: time is not on Morocco’s side. Accelerating the pace of deep institutional reforms is no longer a luxury choice but a necessary condition to escape the trap of modest growth and high unemployment, and to respond to the expectations of a young and ambitious population.
