King’s Reception of Bank Al-Maghrib Report
On Monday, King Mohammed VI, accompanied by Crown Prince Moulay Hassan, welcomed Mr. Abdellatif Jouahri, the Governor of Bank Al-Maghrib, at the Royal Palace in Tetouan. During this meeting, Jouahri presented the annual report of the central bank, which outlines the economic, monetary, and financial situation for the year 2025. In his address to the King, Jouahri highlighted that despite a challenging external environment characterized by ongoing shocks and persistent uncertainty, the national economy continued to show signs of improvement in 2025, achieving a growth rate of 4.9%. This growth was primarily fueled by significant investments, and remarkably, inflation remained low at an average of just 0.8%.
Monetary Policy and Economic Insights
Regarding monetary policy, Jouahri explained that Bank Al-Maghrib maintained an accommodating stance, reducing the key interest rate to 2.25%. The bank continued to meet all liquidity requests from financial institutions and intensified its efforts to facilitate access to financing for small enterprises. As for the labor market, he noted that the economic growth led to the creation of more job opportunities; however, this improvement was insufficient to bring about a significant decrease in the unemployment rate, which stood at 13%.
In terms of public finances, Jouahri reported a continuous reduction in the budget deficit, which settled at 3.5% of the Gross Domestic Product (GDP), thanks to strong tax revenue performance and significant returns from innovative financing mechanisms. On the external accounts front, he indicated that the current account deficit remained manageable, supported by travel income, remittances from Moroccans living abroad, as well as exports of phosphates and aircraft manufacturing. Overall, Bank Al-Maghrib's reserves improved to 443 billion dirhams, equivalent to nearly five and a half months of imports.
Jouahri concluded by emphasizing that these developments reflect the ongoing momentum in the national economy, which bolsters the hope of advancing Morocco’s status among emerging economies. However, achieving this goal necessitates not only continued improvement in the growth rate but also a better distribution of its benefits. He pointed out that in recent years, a gap has been observed between scientifically measured economic performance and the perceptions of citizens, a phenomenon attributed to various global factors.
In Morocco, this discrepancy mainly stems from the labor market not yet reflecting the anticipated improvements. Jouahri underscored the need for continued enhancement of the education and training system, alongside strengthening the impacts of investment while pursuing structural reforms to improve productivity and a more significant role for the private sector to ensure sustainability. Furthermore, he noted that the gap is also influenced by social disparities, prompting the King to highlight in his 2025 Throne Day speech that there is no place for a two-speed Morocco today or in the future. This reality necessitates, despite the substantial resources allocated for social support, a more targeted approach for the most vulnerable groups.
He reiterated that resource rationalization remains an urgent necessity to bolster public budget margins, given the high level of non-reducible expenditures and the anticipated consequences of pension system reforms, which are now unavoidable. He emphasized the importance of regular reviews of expenditures and accelerating the reform of the organic law on finance. Moreover, Jouahri pointed out that in light of the recurring disruptions in global supply chains for many essential goods, implementing the King’s directives from the October 2021 speech regarding the establishment of a strategic stockpile of these materials has become an urgent necessity to shift from a reactive to a preventive approach.
Additionally, he indicated that accelerating the energy transition could reduce dependence on foreign resources and prepare export activities to adapt to the climate standards imposed by several of Morocco's trading partners. In the same vein, he highlighted that the effects of climate change on water resources necessitate that their governance, including valuation, be among the public policy priorities. Regarding the advanced regionalization project, he confirmed that it has gained remarkable momentum since the King’s speech in 2024, and enhancing this dynamic requires mobilizing talents to expedite its implementation, which will facilitate the creation of regional economic hubs that contribute to reducing regional disparities.
Jouahri concluded his address by stating that ensuring the sustainability of Morocco's significant achievements requires continuous mobilization of all stakeholders at all levels, within a framework based on coherent and effective interventions under the leadership of the royal institution, which remains the cornerstone of the Kingdom, a driving force and a source of initiative. On this occasion, Abdellatif Jouahri presented to the King a commemorative gold coin issued by Bank Al-Maghrib to mark the first anniversary of the Unity Day.
As reported by hespress.com.
