King Mohammed VI of Morocco received Abdellatif Jouahri, Governor of Bank Al-Maghrib, at the royal palace in Tétouan earlier this week.

During the meeting, Mr. Jouahri presented the central bank’s annual report on Morocco’s economic, monetary, and financial performance for 2025.

The economy grows by 4.9% amid controlled inflation

In his address to the King, Mr. Jouahri noted that despite persistent global shocks and uncertainties, Morocco’s economy continued its upward trajectory in 2025. Driven primarily by substantial investment efforts, GDP growth accelerated to 4.9%.

While economic activity rebounded, inflation remained well under control, averaging just 0.8% for the year.

Regarding monetary policy, the central bank maintained an accommodative stance, lowering its key interest rate to 2.25%. Bank Al-Maghrib continued to meet all liquidity needs of commercial banks while expanding initiatives to ease credit access for very small enterprises (VSEs).

Labor market and fiscal health

Although economic growth boosted job creation, Mr. Jouahri emphasized it was insufficient to significantly reduce the unemployment rate, which stood at 13%.

Fiscally, the budget deficit continued to narrow, reaching 3.5% of GDP. This improvement was supported by strong tax revenues and returns from innovative financing mechanisms.

Morocco’s external accounts remained stable, buoyed by tourism earnings, remittances from Moroccans abroad, and robust performance in phosphate derivatives and aerospace exports. As a result, Bank Al-Maghrib’s official reserves strengthened to 443 billion dirhams, covering nearly five and a half months of imports.

Addressing perception gaps and structural reforms

Mr. Jouahri stressed that while these macroeconomic indicators reflect progress toward emerging market status, sustainable gains require more equitable distribution of growth benefits.

He highlighted a growing global phenomenon in Morocco: a disconnect between measured economic growth and citizens’ daily economic perceptions. According to the Governor, this gap stems from two main factors:

• Slow labor market integration: Employment growth has not yet met expectations. Bridging this gap requires improving education and training systems, maximizing investment spillovers, advancing structural reforms, and increasing private sector participation.
• Social inequalities: Citing the 2025 Throne Speech, which warned against a “two-speed Morocco,” Mr. Jouahri emphasized that despite substantial allocations to social safety nets, aid must be better targeted to reach the most vulnerable populations.

To preserve fiscal flexibility amid high fixed expenditures and imminent pension system reforms, the Governor called for strict resource rationalization, regular spending reviews, and accelerated reform of the organic finance law.

Strategic reserves and climate resilience

Looking ahead, Mr. Jouahri outlined several strategic priorities for long-term resilience:

• Strategic reserves: Global supply chain disruptions necessitate implementing royal directives from October 2021 to build strategic reserves of essential goods, shifting from reactive to preventive policies.
• Energy transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare Moroccan exporters for stringent climate standards imposed by major trade partners.
• Water governance: Given the severe impact of climate change on water resources, water management and valuation must be central to public policy.
• Advanced regionalization: Under royal directives from 2024, efforts in advanced regionalization must continue to mobilize local talent and foster regional economic hubs, reducing territorial disparities.

In his closing remarks, Mr. Jouahri underscored that consolidating Morocco’s achievements requires sustained, effective coordination among all public and private actors under the leadership of the Monarchy.

Following the presentation, Mr. Jouahri officially handed King Mohammed VI the central bank’s 2025 annual report, along with a commemorative gold coin issued by Bank Al-Maghrib to mark the first anniversary of the “Aid Al Wahda” initiative.