On Monday, July 20, at the Royal Palace in Tetouan, His Majesty King Mohammed VI, accompanied by His Royal Highness Crown Prince Moulay Hassan, welcomed Abdellatif Jouahri, the Governor of Bank Al-Maghrib. During this meeting, Mr. Jouahri presented the annual report of the central bank, detailing the economic, monetary, and financial situation for the year 2025.
In his address before the King, Mr. Jouahri highlighted that despite a challenging external environment characterized by ongoing shocks and persistent uncertainty, the national economy showed notable improvement in 2025, achieving a growth rate of 4.9 percent, primarily driven by significant investment efforts. Notably, this growth occurred alongside a low inflation rate, which averaged only 0.8 percent.
Regarding monetary policy, Mr. Jouahri explained that Bank Al-Maghrib continued to adopt an accommodative approach, reducing the key interest rate to 2.25 percent while ensuring that all banks' liquidity needs were met and intensifying efforts to facilitate access to finance for small and medium-sized enterprises (SMEs).
In the labor market, the recovery in growth led to an increase in job creation; however, this improvement was insufficient to result in a significant decline in the unemployment rate, which remained at 13 percent. On the public finance front, Mr. Jouahri noted that the budget deficit continued to decrease, stabilizing at 3.5 percent of GDP, thanks to strong tax revenue performance and significant returns from innovative financing mechanisms.
In terms of external accounts, Mr. Jouahri stated that the current account deficit remained limited, supported by travel incomes, remittances from Moroccans abroad, as well as exports of phosphates and their derivatives, alongside the aviation sector. Overall, the foreign exchange reserves of Bank Al-Maghrib improved to 443 billion dirhams, equivalent to approximately five and a half months of imports.
Mr. Jouahri emphasized that these developments indicate a sustained momentum within the national economy, fostering hopes of advancing to the ranks of emerging economies in both economic and social domains. However, achieving this goal necessitates not only continued growth but also a more equitable distribution of its benefits. He pointed out that in recent years, a noticeable gap had emerged between economic performance – measured through scientific methodologies – and citizens' perceptions, a phenomenon attributed to various global factors.
In Morocco, this disparity largely stems from the fact that employment has not yet improved as expected. Mr. Jouahri contended that addressing this situation requires not only ongoing reforms to enhance the education and training system but also solidifying the impacts of investment, alongside continued structural reforms to improve its efficacy, and a greater role for the private sector to ensure sustainability.
Furthermore, he noted that this gap is also related to the level of social inequalities, which prompted the King, in his 2025 Throne Speech, to declare that "there is no place today or tomorrow for a Morocco that moves at two speeds." This reality, according to Mr. Jouahri, necessitates a more precise targeting of social support for the most vulnerable groups, despite the significant resources allocated for social assistance.
He also affirmed that rationalizing resources remains an urgent necessity to enhance public budget margins, given the high level of non-reducible expenditures and the anticipated consequences of pension system reforms, which are deemed inevitable. In this context, he emphasized the need for regular reviews of expenditures and the acceleration of reforms related to the organic law of finance.
On another note, Mr. Jouahri stated that due to the recurring disruptions in global supply chains for many essential goods, the implementation of His Majesty's directives from the October 2021 speech regarding the establishment of a strategic stockpile for these materials has become an urgent necessity, transitioning from a remedial approach to a preventive one.
Moreover, he noted that accelerating the energy transition could reduce dependence on foreign sources and prepare export activities to comply with climate standards imposed by several of the Kingdom's trading partners. In this regard, he highlighted that the impacts of climate change on water resources necessitate that the governance of these resources, including their valorization, be prioritized within public policy.
Concerning the advanced regionalization project, he affirmed that it has gained significant momentum since the King's speech in 2024, and that bolstering this dynamic requires mobilizing expertise to expedite its implementation, thus creating regional economic hubs that contribute to reducing spatial disparities.
In conclusion, Mr. Jouahri stated that ensuring the sustainability of the significant achievements made by Morocco requires ongoing mobilization of all stakeholders at every level, within a framework based on the coherence and effectiveness of interventions under the leadership of the royal institution, which remains the cornerstone of the Kingdom and a source of initiative and strength.
On this occasion, Mr. Abdellatif Jouahri presented to the King the annual report of the central bank regarding the economic, monetary, and financial situation for the year 2025, along with a commemorative gold coin issued by Bank Al-Maghrib to commemorate the first anniversary of the Unity Day.
As reported by medi1tv.com.
