TÉTOUAN, Morocco – Morocco’s economy expanded by 4.9% in 2025, while inflation remained contained at 0.8%, according to Bank Al-Maghrib Governor Abdellatif Jouahri, who presented the central bank’s annual economic report to King Mohammed VI on Monday at the Royal Palace in Tétouan. Accompanied by Crown Prince Moulay El Hassan, King Mohammed VI received Jouahri during the annual audience, where the governor outlined Morocco’s economic, monetary and financial performance for the 2025 fiscal year, highlighting stronger growth, improved public finances and resilient external accounts despite a challenging global environment.
Morocco Posts Stronger Growth Amid Global Uncertainty
Addressing the King, Jouahri said Morocco continued its economic recovery despite persistent international shocks and uncertainty. Economic growth reached 4.9%, supported largely by robust investment, while average inflation remained limited to 0.8%, reflecting continued price stability. Bank Al-Maghrib also maintained an accommodative monetary policy by lowering its benchmark interest rate to 2.25%, while continuing to meet banks’ liquidity needs and expanding efforts to improve financing access for very small businesses.
Job Creation Improves, but Unemployment Remains High
Although stronger economic activity generated additional jobs, Jouahri acknowledged that employment gains were not sufficient to significantly reduce unemployment, which stood at 13%. He stressed that future growth must translate into broader employment opportunities and called for stronger links between investment and job creation.
Public Finances and Foreign Reserves Continue to Strengthen
The governor reported further improvement in Morocco’s fiscal position, with the budget deficit narrowing to 3.5% of GDP, supported by higher tax revenues and innovative financing mechanisms. Meanwhile, the country’s current account deficit remained under control, backed by tourism receipts, remittances from Moroccans living abroad, phosphate exports and the growing aerospace industry. Morocco’s official foreign exchange reserves climbed to 443 billion dirhams, representing nearly five and a half months of imports.
Inclusive Growth Remains the Main Challenge
Despite encouraging macroeconomic indicators, Jouahri warned of a widening gap between economic performance and citizens’ perceptions. He attributed this disconnect mainly to persistently high unemployment and social inequalities, echoing King Mohammed VI’s 2025 Throne Speech, in which the monarch declared that « there is no place, today or tomorrow, for a Morocco advancing at two speeds. »
The Bank Al-Maghrib governor called for better targeting of social support, stronger private-sector participation, continued structural reforms and improvements in education and vocational training. He also advocated accelerating pension reform, improving public spending efficiency and strengthening Morocco’s strategic reserves of essential goods to better withstand global supply chain disruptions.
Energy Transition and Regional Development Identified as Priorities
Jouahri emphasized that accelerating Morocco’s energy transition would reduce external dependence while helping exporters comply with emerging climate standards in international markets. He also urged policymakers to prioritize water governance in response to climate change and to accelerate the implementation of advanced regionalization, describing it as essential for reducing territorial disparities and fostering regional economic hubs. At the conclusion of the audience, Jouahri presented King Moham
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