Morocco faces risk from World Cup cost overruns

Morocco’s public finances face a potential risk from 2030 Fifa World Cup cost overruns, rating agency Fitch said in a report.

Morocco, co-hosting the event with Spain and Portugal, launched a major infrastructure program ahead of the World Cup, primarily funded by state-backed companies, public-private partnerships and off-budget entities.

“Public finances face meaningful risks in the event of cost overruns, the need for higher government support, or the buildup of contingent liabilities that could eventually crystallise on the sovereign balance sheet,” the global ratings agency said.

Last October, Morocco’s economy and finance minister Nadia Alaoui said the cabinet had approved $41 billion of infrastructure spending in the run-up to the World Cup. The country has set a target of 17.5 million annual visitors by 2026, rising to 26 million by 2030.

Fitch expects the fiscal deficit to widen to 4 percent of GDP in 2026, from 3.5 percent in 2025, due to the temporary spending related to the Iran conflict.

The fiscal gap is expected to average 3.4 percent of GDP in 2027-2028 as Hormuz-related spending pressures fade. However, on-budget capital spending will remain high, averaging 7.5 percent of GDP, ahead of the World Cup.

Real GDP growth is expected to slow to 4 percent in 2026 from 4.9 percent last year.

“The 2026 moderation reflects the impact of the Hormuz Strait crisis, which has raised energy and transport costs and weakened external demand, particularly from Europe,” the report said.

However, Fitch has affirmed Morocco’s long-term issuer default ratings (IDR) at “BB+” with a stable outlook, citing sound macroeconomic policies and adequate external liquidity buffers.

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