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

GDP growth accelerates to 4.9% amid stable inflation

In his address to the Monarch, Mr. Jouahri noted that despite 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%. Inflation remained well-controlled, averaging just 0.8% for the year.

The central bank maintained an accommodative monetary policy, reducing its key interest rate to 2.25%. Bank Al-Maghrib continued to meet all commercial banks’ liquidity needs while expanding initiatives to ease credit access for very small enterprises.

Labor market and fiscal health

While economic acceleration boosted job creation, Mr. Jouahri observed that growth remained insufficient to significantly reduce unemployment, which stood at 13%.

On the fiscal front, the budget deficit narrowed to 3.5% of GDP, supported by robust tax revenues and innovative financing mechanisms. The country’s external accounts remained stable, buoyed by tourism earnings, remittances from Moroccans abroad and strong export performance in phosphates, phosphate derivatives and aerospace. Official reserves strengthened to 443 billion Moroccan dirhams, covering nearly five and a half months of imports.

Addressing perception gaps and structural reforms

Mr. Jouahri emphasized that while macroeconomic indicators point toward emerging market status, sustainable progress 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 perception gap stems from two key factors: slow labor market integration, where job growth has not met expectations, and social inequalities. To bridge this divide, he called for improved education and training systems, maximizing investment returns, advancing structural reforms and boosting private sector participation.

Regarding social equity, Mr. Jouahri cited the 2025 Throne Speech warning against a “two-speed Morocco,” stressing that despite substantial allocations to social safety nets, aid must be better targeted to reach the most vulnerable populations.

To preserve fiscal flexibility amid high fixed expenditures and imminent pension system reforms, the Governor urged strict resource rationalization, regular spending reviews and accelerated reform of the organic finance law.

Strategic reserves and climate resilience

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

• Establishing strategic reserves of essential goods to address global supply chain disruptions, moving from reactive to preventive policies;
• Accelerating the transition to renewable energy to reduce external dependencies and prepare exporters for stringent climate standards from major trade partners;
• Prioritizing water governance amid severe climate impacts on water resources;
• Advancing advanced regionalization to mobilize local talent, foster regional economic hubs and reduce territorial disparities.

In his concluding remarks, Mr. Jouahri stressed that consolidating Morocco’s achievements requires sustained, effective coordination among all public and private actors under the Monarchy’s leadership.

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