King Mohammed VI received Bank Al-Maghrib Governor Abdellatif Jouahri at the Royal Palace in Tetouan to review the central bank’s annual report on Morocco’s economic performance for 2025.

During the audience, Governor Jouahri presented the central bank’s comprehensive assessment of the country’s economic, monetary, and financial conditions throughout the year.

GDP growth accelerates to 4.9% amid controlled inflation

In his address to the Monarch, Governor Jouahri noted that despite ongoing international challenges and persistent global uncertainties, Morocco’s economy continued its positive momentum in 2025. The country’s GDP growth accelerated to 4.9%, primarily driven by substantial investment efforts.

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

On monetary policy, Bank Al-Maghrib maintained an accommodative stance, reducing its benchmark interest rate to 2.25%. The central bank continued to meet all liquidity needs of commercial banks while intensifying initiatives to improve credit access for small and medium-sized enterprises.

Employment challenges persist despite growth

While economic growth boosted job creation, Governor Jouahri acknowledged that employment gains were insufficient to significantly reduce the unemployment rate, which stood at 13%.

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

Morocco’s external accounts remained stable, buoyed by tourism earnings, remittances from Moroccans abroad, and strong export performance in phosphates, phosphate derivatives, and aerospace. The country’s official reserves strengthened to 443 billion Moroccan dirhams, covering nearly five and a half months of imports.

Addressing the perception gap and structural reforms

Governor Jouahri emphasized that while these macroeconomic indicators demonstrate progress toward emerging economy status, sustainable development requires more equitable distribution of growth benefits.

He highlighted a growing global phenomenon in Morocco: a disconnect between measured economic growth and citizens’ daily economic experiences. This gap stems from two key factors:

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

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

Strategic reserves and climate resilience priorities

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

• Strategic reserves for essential goods: Ongoing global supply chain disruptions necessitate implementing the October 2021 royal directives to establish strategic reserves of essential products, shifting from reactive to preventive policy.
• Energy transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare Moroccan exporters for stringent climate standards imposed by major trading partners.
• Water governance: Given severe climate impacts on water resources, water management and valorization must become top priorities in public policy.
• Advanced regionalization: Following 2024 royal directives, continued efforts in advanced regionalization should mobilize local talent to foster regional economic hubs and reduce territorial disparities.

Governor Jouahri concluded by emphasizing that consolidating Morocco’s achievements requires sustained, effective coordination among all public and private actors under the Monarchy’s guidance.

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