(Ecofin Agency) - Morocco plans to focus more on public investment in 2025, emphasizing boosting social projects to drive development and improve living conditions for its people.

The Moroccan government plans to invest MAD340 billion ($34.4 billion) in public projects in 2025. The announcement was made by Nadia Fettah Alaoui, the Minister of Economy and Finance, during the presentation of the 2025 draft finance act to Parliament.

Local media reported that the amount will benefit many bodies, including public institutions, special Treasury accounts, the Mohammed VI Investment Fund, local governments, and a special fund for managing the impact of the recent earthquake.

Priority areas include infrastructure and essential services such as energy, telecommunications, housing, agriculture, drinking water, and transportation. The initiative aligns with Morocco’s broader strategy to drive development and improve living conditions for its population.

“The government is moving toward adopting a new economic growth model that focuses more on boosting productivity and better distributing investments. This approach will encourage greater private sector participation and strengthen the resilience of the national economy through a more diversified and job-creating production base,” said Minister Fettah, as reported by Morocco’s official news agency, MAP.

Employment support is also a key focus of the 2025 Finance Act. The government has already allocated MAD14 billion to support employment through three main initiatives: promoting job-creating investments, enhancing professional integration programs, and mitigating the impact of drought, particularly in rural jobs. The authorities want to reduce unemployment, especially among young people, while strengthening the labor market’s resilience.

In recent years, Morocco has taken several steps to encourage investment. These include the investment charter, the development of free zones, tax incentives for new industries, and strategic funding for key sectors like agribusiness, aerospace, renewable energy, automotive, and new technologies.

For 2025, the government aims for 4.6% economic growth, up from an estimated 3.3% for 2024. This growth will be driven by positive trends in non-agricultural sectors and improved global economic prospects. Meanwhile, the budget deficit is expected to decrease to around 4% in 2024, down from 4.3% in 2023, thanks to a rise in tax revenue, which increased by 11.9% by the end of September compared to the same period last year.