Moroccan economy gains momentum with 4.9% growth in 2025
Morocco’s King receives central bank’s annual economic report amid strong growth
The 2025 annual report from Bank Al-Maghrib reveals Morocco’s economy grew by 4.9% despite global challenges, as King Mohammed VI receives Governor Abdellatif Jouahri.
His Majesty King Mohammed VI received Bank Al-Maghrib Governor Abdellatif Jouahri at the Royal Palace in Tetouan this week to review the central bank’s 2025 annual report on Morocco’s economic, monetary, and financial landscape.
During the meeting, Mr. Jouahri highlighted Morocco’s sustained economic momentum despite ongoing global volatility. The country’s GDP expanded by 4.9% in 2025, driven by robust investment and strong domestic demand.
Inflation remains under control at 0.8%
The governor noted that inflation averaged just 0.8% last year, reflecting prudent monetary policy even as external pressures persisted. Bank Al-Maghrib maintained an accommodative stance, reducing its key interest rate to 2.25% to support liquidity and credit access for small businesses.
Job creation lags despite growth
While economic expansion boosted employment, the unemployment rate remained high at 13%. Jouahri emphasized the need to enhance education, workforce training, and private sector participation to better translate growth into job opportunities.
Budget deficit narrows to 3.5% of GDP
Morocco’s fiscal deficit improved to 3.5% of GDP, supported by strong tax revenues and innovative financing mechanisms. Foreign reserves reached 443 billion Moroccan dirhams—equivalent to five and a half months of imports—thanks to tourism earnings, remittances from Moroccans abroad, and strong phosphate and aerospace exports.
Addressing inequality and structural gaps
Jouahri stressed that while macroeconomic indicators signal progress toward emerging market status, sustainable development requires more equitable growth. He pointed to a widening gap between measured economic gains and public sentiment, driven by:
- Labor market challenges: Job creation has not kept pace with economic growth, necessitating reforms in education, vocational training, and private sector integration.
- Social disparities: Despite substantial investments in social safety nets, targeted support for vulnerable populations remains critical to prevent a “two-speed Morocco.”
The governor called for stricter budgetary controls, regular spending reviews, and accelerated reforms to the organic finance law to ensure fiscal flexibility amid rising pension obligations.
Long-term resilience priorities
Looking ahead, Jouahri outlined key strategic priorities to bolster Morocco’s economic resilience:
- Strategic reserves: Expanding food and essential goods reserves to mitigate supply chain disruptions, aligning with 2021 royal directives.
- Energy transition: Accelerating renewable energy adoption to reduce import dependence and align with EU climate standards.
- Water governance: Prioritizing sustainable water management amid climate change impacts.
- Advanced regionalization: Strengthening regional economic hubs to reduce territorial disparities and mobilize local talent.
In closing, Jouahri underscored the need for coordinated public-private action under the monarchy’s leadership to consolidate Morocco’s economic gains. Following the presentation, he formally handed King Mohammed VI the 2025 annual report and a commemorative gold coin marking the first anniversary of the “Aid Al Wahda” initiative.