For the first time in its history, Morocco has appointed a female Prime Minister, Fatima Ezzahra El Mansouri, who previously served as the mayor of Marrakech. She is part of the Authenticity and Modernity Party, a conservative and monarchist political faction, which recently won the elections held on September 23 by securing 23% of the votes. One of her primary responsibilities will be to form a coalition government, while simultaneously managing an economy that finds itself in a paradoxical situation. Morocco is experiencing significant growth and has successfully attracted investments, developing a robust industrial base; however, it continues to grapple with structural issues that hinder job creation and the integration of its youth. Over the past year, young Moroccans have taken to the streets to protest against social and economic challenges prevalent across the nation.
Indeed, political discontent has spread like wildfire, particularly among the youth, as highlighted by prior reports. The 2026 elections occurred against a backdrop of increasing disaffection among young Moroccans. The latest Afrobarometer report indicated that only 37% of citizens aged 18 to 35 expressed confidence in the Parliament, with similar levels of trust in the Prime Minister and political parties. The youth perceive greater levels of corruption among elected officials compared to older generations, and their participation in traditional political channels has diminished, while their presence on social media and in protests has surged. More than a third of Moroccans stated they had no intention of voting, and a study conducted by the Moroccan Center for Citizenship found that a staggering 94.8% of the 1,197 respondents expressed a lack of trust in political parties, based on a survey conducted between July 31 and August 31, 2025. Notably, voter abstention dominated the elections, with over half the population—62%—choosing not to participate, particularly among younger generations.
Economic Growth Amidst Challenges
El Mansouri takes office during a relatively positive economic climate. Morocco is navigating one of the most significant economic expansions it has witnessed in decades. The GDP grew by 4.9% in 2025, with international forecasts predicting growth rates above 4% for 2026. The World Bank anticipates an expansion of 4.2% this year, while the IMF has raised its forecast to 4.4%. Furthermore, the international organization expects growth to reach 4.5% in 2027, indicating substantial macroeconomic progress for the North African nation.
In recent years, Morocco has increasingly built a more industrialized and export-oriented economy. The automotive sector serves as a prime example, with companies like Renault and Stellantis establishing operations that have positioned Morocco as Africa’s largest vehicle exporter. This has led to the creation of an extensive network of suppliers, going beyond mere assembly, effectively transforming Morocco into a hub of manufacturing within Africa. The country is leveraging its competitive costs, geographical proximity to Europe, and logistical connections to attract further investments.
Morocco aims to diversify its industrial base, which now includes sectors such as aerospace, phosphate and fertilizer production, industrial components, energy, and logistics. Its strategic geographic location is a critical asset, serving as a link between Africa and Europe while benefiting from its unique position amid the ongoing competition between China and the United States.
Generational Challenges and the Role of Women
According to a report published by the Real Instituto Elcano on September 29, titled "The Future of Morocco Post-2026 Elections," researchers Alfonso Casani and David Hernández Martínez highlight the key challenges faced by this new government. Among these is the critical task of ensuring that the macroeconomic growth translates into tangible benefits for the entire population. The IMF reports that the unemployment rate hovers around 13%, with nearly two-thirds of these unemployed individuals having been jobless for over a year, entering what is commonly referred to as long-term unemployment. Between 2000 and 2024, the working-age population grew nearly 2.5 times faster than job creation, resulting in this troubling situation.
For the youth, the outlook is even more dire, with official estimates indicating an unemployment rate of 37% among young people. The challenges they face in securing stable employment and housing are particularly acute. The IMF estimates that 25.2% of individuals aged 15 to 24 were neither studying, working, nor receiving vocational training in the third quarter of 2025, with this figure rising to 37.3% among young women. These statistics illustrate the disconnect between the economic transformation taking place and the expectations of a significant portion of the population.
Moreover, the economic growth has not automatically translated into widespread salary improvements across all sectors. The OECD has warned that Morocco's minimum wage has plateaued in real terms, while more recent data shows that wages for employees have only increased among the more privileged sectors. Thus, the issue is not merely about the extent of wage growth but rather about who has access to these wages and the labor market's capacity to distribute the benefits of economic growth equitably.
Another significant imbalance highlighted by Elcano concerns women. Morocco has seen a considerable increase in female educational attainment, yet this improvement has not been reflected in the labor market to the same degree, as unemployment remains a significant challenge. The World Bank identifies women's participation in the labor force as one of the main structural weaknesses of the Moroccan economy, pinpointing this as a key obstacle along with difficulties in accessing childcare services, transportation issues, and a lack of flexible working arrangements. By excluding a substantial portion of its potentially active population from the labor market, Morocco is simultaneously losing out on a source of growth and job creation that could be particularly vital in the coming years.
Agriculture also presents one of the major challenges affecting the country, threatening to significantly impede economic development. While Morocco is developing new infrastructure, attracting industries, and establishing major economic hubs, a portion of its territory remains dependent on a sector increasingly vulnerable to water scarcity, despite still being productive. The IMF has assessed the impacts that Morocco has faced due to five drought episodes in the six years leading up to 2025, noting that cereal production was approximately 40% below its historical average during that period. Meanwhile, nearly one-third of the workforce remains linked to agriculture, a sector increasingly exposed to rising temperatures.
Indeed, the agri-food sector accounts for 11% of the country's GDP and employs nearly 36% of the workforce. In other words, more than a third of the population's economic stability hinges on the absence of adverse climate events. The OECD estimates that per capita availability of renewable freshwater fell by nearly 70% between 1960 and 2020, with agriculture consuming about 90% of the country’s water resources. The World Bank warns that this availability could drop below 500 cubic meters per person per year by 2030 and estimates that the effects of climate change on water resources and crops could reduce GDP by as much as 6.5% in the long term over the next decade.
In conclusion, the new government will need to confront a particularly complex situation, characterized by a climate of deep political distrust marked by the dual reality of possessing significant economic growth that is not reaching the majority of the population, alongside increasingly pressing climate threats.
As reported by eleconomista.es.
