King Mohammed VI of Morocco received Abdelatif Jouahri, Governor of Bank Al-Maghrib, at the royal palace in Tétouan earlier this week. During the meeting, Jouahri presented the central bank’s 2025 annual report, detailing the country’s economic, monetary, and financial landscape.

Strong economic growth despite global headwinds

Jouahri highlighted that Morocco’s economy grew by 4.9% in 2025, defying global shocks and persistent uncertainties. This expansion was primarily driven by significant investment efforts across key sectors. Inflation remained well under control, averaging just 0.8% for the year.

Monetary policy remains accommodative

Bank Al-Maghrib maintained a supportive monetary stance, reducing its key interest rate to 2.25%. The central bank continued to ensure ample liquidity for commercial banks while expanding credit access for small and medium-sized enterprises through targeted initiatives.

Labor market and fiscal health

While economic growth boosted job creation, the unemployment rate remained stubbornly high at 13%. On the fiscal front, the budget deficit narrowed to 3.5% of GDP, 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. Foreign reserves rose to 443 billion Moroccan dirhams, covering more than five months of imports.

Addressing growth disparities and structural reforms

Despite these positive indicators, Jouahri emphasized that sustainable progress requires a more equitable distribution of growth benefits. He pointed to a growing global trend in Morocco where objective economic growth does not align with public perception. This gap stems from two key issues:

• Labor market integration: Job growth has not yet matched expectations. Addressing this requires improving education and training systems, maximizing investment spillovers, advancing structural reforms, and boosting private sector participation.
• Social inequalities: Referencing the 2025 Throne Speech, which warned against a “two-speed Morocco,” Jouahri stressed that while social safety nets have expanded, aid must be better targeted to reach the most vulnerable populations.

To maintain fiscal flexibility amid rising fixed costs and imminent pension system reforms, the governor called for strict resource rationalization, regular spending reviews, and accelerated reforms to the organic finance law.

Long-term resilience: food security, energy transition, and water management

Looking ahead, Jouahri outlined strategic priorities to enhance Morocco’s long-term resilience:

• Strategic reserves: Building on royal directives from October 2021, Morocco must strengthen strategic reserves of essential goods to shift from reactive to preventive supply chain management.
• Energy transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare exporters for stricter climate standards imposed by major trading partners.
• Water governance: Given the severe impact of climate change on water resources, water management and valorization must become central to public policy.
• Advanced regionalization: Following royal directives from 2024, efforts to advance regionalization should continue to harness local talent, foster regional economic hubs, and reduce territorial disparities.

In concluding remarks, Jouahri stressed that consolidating Morocco’s economic gains requires sustained coordination between public and private actors under the leadership of the Monarchy.

Following the presentation, Jouahri formally submitted the 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.