Morocco’s Economic Resilience Faces Social Imperative: Bank Al-Maghrib Report Highlights Growth-Perception Gap

His Majesty King Mohammed VI, accompanied by HRH Crown Prince Moulay El Hassan, received Bank Al-Maghrib Governor Abdellatif Jouahri at the Royal Palace in Tetouan on Monday, July 20, 2026. The occasion was the presentation of the Central Bank’s comprehensive annual report for 2025, which paints a picture of robust economic expansion amidst global turbulence. However, beyond the encouraging statistics, Jouahri’s address critically illuminated a pressing challenge: the growing disparity between Morocco’s objective economic achievements and the public’s perception of their daily well-being.

Despite an international landscape fraught with “successive shocks and persistent uncertainties,” Morocco’s domestic economy recorded a significant 4.9% growth in 2025. This momentum was largely fueled by substantial investment efforts. Inflation remained notably moderate at an average of 0.8 percent, while the central bank maintained an accommodative monetary stance, lowering its key rate to 2.25%. Bank Al-Maghrib also actively supported liquidity for banks and facilitated access to financing for Very Small Enterprises (VSEs).

The report highlighted a continued improvement in public finances, with the fiscal deficit shrinking to 3.5% of GDP. This positive trajectory was underpinned by strong tax revenue performance and the successful deployment of innovative financing mechanisms. Externally, the current account deficit remained contained, bolstered by robust travel receipts, expatriate remittances, and strong exports from the phosphate, derivatives, and aeronautics sectors. Consequently, official reserve assets strengthened to 443 billion dirhams, securing nearly five and a half months of imports.

While growth generated job creation, it proved insufficient to significantly reduce the national unemployment rate, which lingered at 13%. This persistent challenge contributes to what Jouahri termed a “gap between objectively measured economic performance and citizens’ perceptions.” This global phenomenon, he explained, is particularly acute in Morocco due to the slower-than-expected improvement in employment figures.

The Governor further underscored that social inequality exacerbates this perception gap, recalling King Mohammed VI’s powerful caution in his 2025 Throne Speech: “it is not acceptable for Morocco – today or at any time in the future – to be a two-speed country.” This royal directive emphasizes the urgent need for a more equitable distribution of economic benefits.

To bridge this divide and foster genuine “economic and social emergence,” the report outlined several critical areas for action. These include upgrading the education and training system, strengthening the spillover effects of investment through structural reforms, and leveraging the private sector for sustainable growth. Jouahri also called for more precise targeting of vulnerable populations in social support programs, alongside rationalizing public resources. This would involve regular spending reviews and accelerating reforms of the Organic Finance Law, especially given the impact of pension scheme adjustments.

Beyond social equity, the report also stressed the importance of national resilience. In response to recurring global supply chain disruptions, Jouahri advocated for implementing the King’s October 2021 instructions to establish strategic reserves of essential goods, shifting towards a preventive approach. Accelerating the energy transition was also highlighted as crucial for reducing external dependence and preparing Moroccan exporters for evolving climate standards. Furthermore, the report emphasized elevating water resource governance, including pricing, to a national public policy priority in light of climate change implications.

Significant momentum in the advanced regionalization project since the King’s 2024 speech was acknowledged. Jouahri stressed the need to mobilize necessary skills to accelerate its implementation and foster regional economic hubs, thereby reducing territorial inequality.

Jouahri concluded by reaffirming that sustaining Morocco’s significant progress demands the unwavering mobilization of all stakeholders at every level. This collective effort must be guided by an approach ensuring consistency and efficiency, all under the unifying leadership of the Monarchy – described as the country’s “foremost asset and a driving force for impetus and initiative.”

The 2025 Bank Al-Maghrib report thus presents a nuanced view of Morocco’s economic journey: one of demonstrable strength and strategic foresight, yet also one confronting the profound challenge of translating macro-level success into tangible, inclusive prosperity for all citizens. In a symbolic gesture following the presentation, Governor Jouahri also offered HM King Mohammed VI a commemorative solid gold coin, marking the first anniversary of “Unity Day.”