His Majesty King Mohammed VI received Governor Abdellatif Jouahri of Bank Al-Maghrib at the Royal Palace in Tetouan this week to review the central bank’s annual economic, monetary, and financial report for 2025.

During the meeting, Governor Jouahri presented the findings, which reflect a year of robust economic performance despite persistent global challenges. Morocco’s GDP growth accelerated to 4.9% in 2025, driven primarily by strong investment initiatives across key sectors.

Inflation remained under control throughout the year, averaging just 0.8%, reinforcing the effectiveness of monetary policy adjustments.

Bank Al-Maghrib maintained an accommodative monetary stance, lowering the key interest rate to 2.25% to support credit access for businesses, particularly small and medium-sized enterprises. The central bank also ensured sufficient liquidity for commercial banks to meet financing demands.

employment challenges and fiscal stability

While economic growth spurred job creation, Governor Jouahri noted that the labor market has yet to fully absorb the expanding workforce. The unemployment rate stood at 13% in 2025, highlighting the need for deeper structural reforms in education, vocational training, and private sector participation.

On the fiscal front, Morocco continued to reduce its budget deficit to 3.5% of GDP, supported by strong tax revenues and innovative financing mechanisms. The country’s external accounts remained stable, buoyed by strong tourism earnings, remittances from Moroccans abroad, and strong export performance in phosphates, phosphate derivatives, and aerospace components.

Foreign reserves strengthened to 443 billion Moroccan dirhams, covering more than five months of imports—a clear indicator of economic resilience.

addressing inequality and future priorities

Governor Jouahri emphasized that while macroeconomic indicators signal progress toward emerging market status, sustainable development requires equitable growth. He pointed to a growing disconnect between measurable economic growth and public perception, driven by two key factors:

• Labor market integration: Employment growth has not kept pace with expectations. Bridging this gap demands improved education systems, targeted vocational training, and accelerated structural reforms to enhance private sector engagement.
• Social inequality: Citing the King’s 2025 Throne Speech, which warned against a “two-speed Morocco,” Jouahri stressed the need for better-targeted social safety nets to reach the most vulnerable populations.

To maintain fiscal flexibility amid rising fixed expenditures and imminent pension system reforms, he called for stricter resource management, regular spending reviews, and accelerated implementation of the organic finance law.

long-term resilience and strategic priorities

Looking ahead, Bank Al-Maghrib outlined several strategic priorities to ensure long-term economic resilience:

• Strategic reserves: Strengthening food and essential goods reserves to mitigate global supply chain disruptions, shifting from reactive to preventive policies as directed by royal guidelines in 2021.
• Energy transition: Accelerating the shift to renewable energy sources to reduce dependence on imports and align with strict climate standards imposed by major trade partners.
• Water governance: Addressing severe climate impacts on water resources by prioritizing sustainable management and conservation policies.
• Regional development: Advancing regionalization initiatives to foster local economic hubs and reduce territorial disparities, in line with royal directives from 2024.

In his closing remarks, Governor Jouahri underscored the importance of coordinated efforts between public and private actors, guided by the Monarchy, to consolidate Morocco’s economic achievements.

Following the presentation, Governor Jouahri formally submitted the 2025 annual report to King Mohammed VI and presented a commemorative gold coin issued by Bank Al-Maghrib to mark the first anniversary of the “Aid Al Wahda” initiative.