On Monday, King Mohammed VI of Morocco held a significant audience with Abdellatif Jouahri, the Governor of Bank Al-Maghrib, the nation's central bank, at the Royal Palace in Tetouan. During this meeting, Jouahri presented the annual report outlining the economic, monetary, and financial status of Morocco for the fiscal year 2025, shedding light on the country’s progress despite global challenges.
Economic Growth Amidst Controlled Inflation
In his address to the Sovereign, Jouahri emphasized that Morocco's economy continued its upward trajectory in 2025, achieving a notable GDP growth rate of 4.9%. This growth was primarily driven by significant investment efforts, showcasing resilience in the face of ongoing global crises and uncertainties that have marked the international landscape. Notably, while economic activity surged, inflation remained well-regulated, averaging just 0.8% throughout the year. In terms of monetary policy, the central bank adopted an accommodative stance, lowering its benchmark interest rate to 2.25%. Bank Al-Maghrib also met all liquidity demands from commercial banks, while intensifying initiatives to enhance credit accessibility for micro-enterprises.
The labor market saw positive developments as the economic acceleration fostered job creation; however, Jouahri pointed out that this was not sufficient to yield a tangible decrease in the unemployment rate, which stood at 13%. On the fiscal front, the budget deficit continued to shrink, reaching 3.5% of GDP, supported by robust tax revenue and innovative financing mechanisms. Morocco's external accounts remained stable, buoyed by tourism income, remittances from Moroccans residing abroad, and strong performance in phosphate exports and the aerospace sector. Consequently, the official reserve assets of Bank Al-Maghrib strengthened to 443 billion dirhams, providing coverage for nearly five and a half months of imports.
Addressing Perception Gaps and Structural Reforms
While these macroeconomic indicators signal a move towards emerging market status, Jouahri noted that sustainable progress necessitates a more equitable distribution of the benefits of growth. He addressed a growing global phenomenon observed in Morocco over recent years: a disconnect between objectively measured economic growth and the everyday economic perception of citizens. According to the governor, this gap is attributed to two main factors: a slow integration into the labor market, where job growth has not met expectations, and social inequalities. To bridge this gap, it is vital to enhance education and training systems, maximize the indirect effects of investment, drive structural reforms, and increase private sector participation. Additionally, Jouahri echoed the sentiments expressed in King Mohammed VI's 2025 Throne Speech, which warned against a 'two-speed Morocco', highlighting the need for social assistance to be more precisely directed to reach the most vulnerable segments of the population.
To maintain fiscal flexibility amidst rising fixed expenditures and the impending reforms of the pension system, the governor advocated for strict resource rationalization, regular spending reviews, and accelerated reform of the Organic Finance Law. Looking towards long-term resilience, Jouahri outlined several strategic priorities, including establishing strategic reserves of essential food and products in response to recurrent global supply chain disruptions, accelerating the transition to renewable energy to reduce external dependencies, prioritizing water management due to the severe impacts of climate change on water resources, and advancing regionalization efforts to mobilize local talent and reduce territorial disparities.
In conclusion, Jouahri stressed that solidifying Morocco’s achievements requires sustained and efficient coordination among all stakeholders, both public and private, under the leadership of the Monarchy. Following the presentation, Jouahri formally handed King Mohammed VI the annual report from the central bank for 2025, along with a commemorative gold coin minted by Bank Al-Maghrib to celebrate the first anniversary of 'Aid Al Wahda'.
As reported by atalayar.com.
