King Mohammed VI of Morocco received Bank Al-Maghrib Governor Abdellatif Jouahri at the Royal Palace in Tétouan on Monday to review the central bank’s 2025 annual economic, monetary, and financial report.

During the meeting, Governor Jouahri presented the report outlining Morocco’s economic performance in 2025, which demonstrated remarkable resilience despite global headwinds.

Economic growth accelerates to 4.9% with controlled inflation

Jouahri highlighted that Morocco’s GDP growth reached 4.9% in 2025, driven primarily by substantial investment efforts. This expansion occurred against a backdrop of persistent global shocks and lingering uncertainties.

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

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

Labor market challenges and fiscal health

While economic growth boosted job creation, the positive impact on unemployment remained limited. The jobless rate stood at 13%, unchanged from previous periods.

On the fiscal front, Morocco’s budget deficit narrowed to 3.5% of GDP, supported by strong tax revenues and innovative financing mechanisms.

The Kingdom’s external accounts remained stable, buoyed by tourism receipts, remittances from Moroccans abroad, and robust export performance in phosphates, phosphate derivatives, and aerospace. As a result, Bank Al-Maghrib’s official reserves strengthened to 443 billion Moroccan dirhams, covering more than five and a half months of imports.

Addressing the perception gap and structural reforms

Jouahri emphasized that while these macroeconomic indicators reflect progress toward emerging market status, sustainable development requires more equitable growth distribution.

He pointed to a growing global phenomenon in Morocco: a widening gap between measured economic growth and citizens’ daily economic perceptions. According to the governor, two key factors drive this disparity:

• Slow labor market integration: Employment growth hasn’t yet met expectations. Bridging this gap demands improved education and training systems, maximizing investment returns, advancing structural reforms, and boosting private sector participation.
• Social inequalities: Citing the 2025 Throne Speech, which warned against a “two-speed Morocco,” Jouahri stressed that despite significant allocations to social safety nets, assistance must be better targeted to reach the most vulnerable populations.

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

Strategic reserves and climate resilience

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

• Strategic reserves for essential goods: Global supply chain disruptions necessitate implementing royal directives from October 2021 to establish strategic reserves, shifting from reactive to preventive policies.
• Energy transition: Accelerating the shift to renewable energy will reduce external dependencies and prepare Moroccan exporters for strict climate standards imposed by major trading partners.
• Water governance: Given climate change’s severe impact on water resources, water management and valorization must become public policy priorities.
• Advanced regionalization: Following 2024 royal directives, efforts to advance regionalization should continue mobilizing local talent to foster regional economic hubs and reduce territorial disparities.

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

The meeting concluded with Governor Jouahri officially presenting the 2025 annual report to King Mohammed VI, along with a commemorative solid gold coin minted by Bank Al-Maghrib to mark the first anniversary of the Aid Al Wahda initiative.