Morocco’s King Mohammed VI received on Monday Abdellatif Jouahri, Governor of Bank Al-Maghrib (Morocco’s central bank), at the Royal Palace in Tetouan.
During the audience, Jouahri presented the central bank’s annual report on the country’s economic, monetary, and financial status for the 2025 financial year.
Economic Growth Accelerates to 4.9% Amid Moderate Inflation
In his address to the Sovereign, Jouahri highlighted that despite an international landscape marked by successive global shocks and lingering uncertainties, Morocco’s national economy continued its upward trajectory in 2025. Driven primarily by substantial investment efforts, GDP growth accelerated to 4.9%.
Despite this uptick in economic activity, inflation remained well-controlled, averaging 0.8% over the course of the year.
On monetary policy, the central bank maintained an accommodating stance, lowering its key policy rate to 2.25%. Bank Al-Maghrib continued to meet all liquidity demands from commercial banks while stepping up initiatives to facilitate credit access for Very Small Enterprises (VSEs).
Labour Market & Fiscal Health
While economic acceleration spurred job creation, Jouahri noted it was insufficient to trigger a tangible decline in the unemployment rate, which settled at 13%.
On the fiscal front, the budget deficit continued to narrow, reaching 3.5% of GDP. This improvement was bolstered by strong tax revenue performance and yields from innovative financing mechanisms.
Morocco’s external accounts also remained stable, supported by tourism receipts, remittances from Moroccans Residing Abroad (MRAs), and solid export performances in phosphates, phosphate derivatives, and the aerospace sector. Consequently, Bank Al-Maghrib’s official reserve assets strengthened to 443 billion dirhams—covering nearly five and a half months of imports.
Addressing the Perception Gap and Structural Reforms
Jouahri emphasized that while these macroeconomic indicators signal momentum toward emerging economy status, sustainable progress requires a more equitable distribution of growth benefits.
He addressed a growing global phenomenon observed in Morocco over recent years: a disconnect between objectively measured economic growth and the day-to-day economic perception of citizens. According to the Governor, this gap in Morocco stems from two main factors:
Sluggish Job Market Integration: Employment growth has not yet matched expectations. Closing this gap requires upgrading education and training systems, maximizing the spillover effects of investment, advancing structural reforms, and increasing private sector involvement.
Social Inequalities: Citing His Majesty the King’s 2025 Throne Speech warning that “there is no room, today or tomorrow, for a two-speed Morocco,” Jouahri noted that despite substantial resources allocated to social safety nets, social assistance requires tighter targeting to reach the most vulnerable segments of the population.
To maintain fiscal flexibility amid high fixed expenditures and impending, unavoidable pension system reforms, the Governor called for strict resource rationalization, regular expenditure reviews, and an accelerated reform of the Organic Law on Finance.
Strategic Reserves and Climate Resilience
Looking toward long-term resilience, Jouahri pointed to several strategic priorities:
Strategic Food & Essential Reserves: Recurrent global supply chain disruptions necessitate executing the Royal Directives from October 2021 to establish strategic reserves of essential commodities, shifting from a reactive approach to a preventive policy.
Energy Transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare Moroccan exporters for strict climate standards being instituted by major trade partners.
Water Governance: Given the severe impact of climate change on water resources, water management and valuation must rank at the top of public policy priorities.
Advanced Regionalization: Spurred by Royal directives in 2024, advanced regionalization efforts must continue mobilizing local talent to foster regional economic hubs and reduce territorial disparities.
In his concluding remarks, Jouahri emphasized that consolidating Morocco’s gains requires sustained, efficient coordination across all public and private stakeholders under the leadership of the Monarchy.
Following the presentation, Jouahri formally handed King Mohammed VI the central bank’s annual report for 2025, alongside a commemorative solid gold coin minted by Bank Al-Maghrib to mark the 1st anniversary of “Aid Al Wahda.”
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