King Mohammed VI of Morocco received Abdellatif Jouahri, Governor of Bank Al-Maghrib, at the royal palace in Tétouan on Monday. During the meeting, Mr. Jouahri presented the central bank’s annual report on the country’s economic, monetary, and financial situation for the 2025 fiscal year.

Economic growth accelerates to 4.9% amid moderate inflation

Addressing the Monarch, Mr. Jouahri highlighted that despite an international context marked by successive global shocks and persistent uncertainties, Morocco’s national economy maintained its upward trajectory throughout 2025. Driven primarily by significant investment efforts, GDP growth accelerated to 4.9%.

Despite this economic rebound, inflation remained well under control, averaging just 0.8% for the entire year.

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

Labor market and fiscal health

While economic acceleration boosted job creation, Mr. Jouahri noted it was insufficient to drive a tangible decline in the unemployment rate, which stood at 13%.

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

Morocco’s external accounts remained stable, buoyed by tourism receipts, remittances from Moroccans abroad, and strong export performances in phosphates, phosphate derivatives, and aerospace. Consequently, Bank Al-Maghrib’s official reserves strengthened to 443 billion Moroccan dirhams, covering nearly five and a half months of imports.

Bridging the perception gap and advancing structural reforms

Mr. Jouahri emphasized 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 observed in Morocco in recent years: a disconnect between objectively measured economic growth and citizens’ daily economic perceptions. In Morocco, this gap stems from two main factors:

• Slow labor market integration: Job growth has yet to meet expectations. Closing this gap requires improving education and training systems, maximizing investment returns, advancing structural reforms, and boosting private sector participation.
• Social inequalities: Citing the 2025 Throne Speech where His Majesty the King warned against a “two-speed Morocco,” Mr. Jouahri stressed that despite substantial allocations to social safety nets, aid must be better targeted to reach the most vulnerable segments of the population.

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 law on finance.

Strategic reserves and climate resilience

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

• Strategic food and essential goods reserves: Repeated global supply chain disruptions necessitate implementing the Royal directives from October 2021 to build strategic reserves of essential products, shifting from a reactive to a preventive approach.
• Energy transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare Moroccan exporters for the strict climate standards set by major trading partners.
• Water governance: Given the severe impact of climate change on water resources, water management and valuation must take center stage in public policies.
• Advanced regionalization: Guided by the 2024 Royal directives, efforts in advanced regionalization must continue to mobilize local talent, fostering regional economic hubs and reducing territorial disparities.

In his closing remarks, Mr. Jouahri stressed that consolidating Morocco’s achievements requires sustained and effective coordination among all public and private stakeholders, 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 minted by Bank Al-Maghrib to mark the first anniversary of the “Aid Al Wahda” initiative.