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 performance for 2025.
GDP growth accelerates to 4.9% amid controlled inflation
In his address to the King, Governor Jouahri highlighted that despite a challenging international environment marked by successive global shocks and persistent uncertainties, Morocco’s economy maintained its upward trajectory in 2025. Driven primarily by substantial investment efforts, GDP growth accelerated to 4.9%, while inflation remained exceptionally stable at an average of 0.8% for the year.
Monetary policy and credit accessibility
Bank Al-Maghrib adopted an accommodative monetary stance, lowering its key 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 micro-enterprises (TPEs).
Employment and fiscal health
While economic growth spurred job creation, the unemployment rate remained high at 13%. On the fiscal front, the budget deficit narrowed further to 3.5% of GDP, supported by strong tax revenues and innovative financing mechanisms.
Morocco’s external accounts remained robust, buoyed by tourism earnings, remittances from Moroccans abroad, and strong export performance in phosphates, phosphate derivatives, and aerospace. As a result, Bank Al-Maghrib’s official reserves strengthened to 443 billion Moroccan dirhams, covering nearly five and a half months of imports.
Addressing growth disparities and structural challenges
Governor Jouahri emphasized that while macroeconomic indicators reflect progress toward emerging market status, sustainable development requires equitable distribution of growth benefits. He highlighted a growing global phenomenon in Morocco: a widening gap between measured economic growth and citizens’ daily economic perceptions. This disparity stems from two key issues:
- Labor market integration: Job growth has not yet met expectations. Bridging this gap demands improvements in education and training systems, maximizing investment returns, advancing structural reforms, and boosting private sector participation.
- Social inequalities: Referencing the 2025 Throne Speech, where His Majesty warned against a “two-speed Morocco,” Jouahri stressed that despite significant allocations to social safety nets, welfare programs must become more 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 implementation of the organic law on finance.
Strategic priorities for long-term resilience
Looking ahead, Bank Al-Maghrib’s strategic priorities include:
- Strategic reserves: Building food and essential goods reserves to transition from reactive policies to preventive measures, addressing vulnerabilities in global supply chains.
- Energy transition: Accelerating renewable energy adoption to reduce import dependency and align exporters with stricter climate standards imposed by key trading partners.
- Water governance: Addressing severe climate impacts on water resources through improved management and valorization policies.
- Advanced regionalization: Continuing efforts to empower local talent and foster regional economic hubs, reducing territorial disparities as outlined in the 2024 Royal directives.
Jouahri concluded by stressing 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, Governor Jouahri officially handed 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.
