Public health and economic development: An empirical analysis of health investments and their impact on economic productivity in Morocco

Abstract

Morocco is currently undergoing a major transformation of its healthcare system, driven by Framework Law No. 06-22 and the country’s shift toward more sustainable development. In this context, health is increasingly viewed not merely as a social expenditure, but as a strategic factor capable of supporting economic growth. This study analyzes the influence of health policies on national development, specifically examining the links between investments in the sector, labor productivity, and the reduction of social inequalities. Using a mixed-methods approach grounded in human capital theory and leveraging macroeconomic data covering the period 2000–2025, the analysis demonstrates that a 1% increase in life expectancy generates a 6% growth in GDP per capita over the long term. This achievement translates into an unprecedented acceleration in funding, with a record budget of 42.4 billion dirhams projected for 2026, marking a significant 30% increase compared to 2025. However, despite these financial advances, structural barriers persist and limit the impact of these investments. Households continue to bear a disproportionate share of the costs, financing 54% to 60% of health expenditures through out-of-pocket payments. Furthermore, the distribution of public funds remains regressive, as 40% of investments benefit the wealthiest 20% of the population. In conclusion, while current reforms particularly the expansion of universal health coverage (UHC) undoubtedly position health as a driver of productivity, their actual economic effectiveness will depend on the country’s ability to reduce geographic and social disparities. A comprehensive approach that integrates health, education, and public-private partnerships is therefore essential to maximize the return on investment in health.