King Mohammed VI received,on Tuesday at the Royal Palace in Tetouan,Governor of central Bank Abdellatif Jouahri,who presented to the Sovereign the Bank’s annual report on the Kingdom’s economic,monetary and financial situation in 2024.
The royal audience was attended by Crown Prince Moulay El Hassan and Prince Moulay Rachid.
In his address before the King,Jouahri said despite a highly uncertain international environment and successive years of drought,the country’s economy grew in 2024 by 3.8% supported by strong performance of non-agricultural sectors,while inflation declined significantly averaging 0.9%.
With the dissipating inflationary pressures and in order to support the economic recovery,Bank Al-Maghrib began easing its monetary policy,reducing its key rate twice,while continuing to meet all banks’ requests for liquidity,said Jouahri,noting that the improvement of domestic economy has created 82,000 jobs. However,this was not sufficient to reverse the upward trend in unemployment,which averaged 13.3%.
Regarding public finances,the Governor of Bank Al-Maghrib reported that fiscal consolidation is ongoing,with the deficit falling to 3.9% of GDP,thanks to the good performance of tax revenue and substantial receipts from innovative financing mechanisms.
He also cited the continued dynamism of the automotive industry and sales of phosphate & derivatives,the decrease of energy bill,the upward trend of travel receipts and remittances of Moroccan expatriates.
Under the royal leadership,Morocco has embarked on one of the most ambitious agendas of institutional,economic,and social reforms,in parallel with an unprecedented investment program to equip the Kingdom with a high-quality infrastructure,said Jouahri.
The royal vision,commended by international institutions,has yielded significant progress on several fronts,he added. However,the country’s momentum was affected during the past decade by the successive shocks and the persistence of an uncertain external environment.
To address this situation,the Governor of the Central Bank said King Mohammed VI launched important reforms and projects aimed at accelerating growth and human development,along with modernization of infrastructure. The Monarch has also launched initiatives to ensure water security,food sovereignty,speed up energy transition and prepare the country for hosting major continental and international events.
The Royal initiatives spurred a strong momentum,suggesting that 2024 will be a pivotal year for accelerating economic growth and job creation,added Jouahri.
To achieve results that match the ambitions of the King,public policy should focus on three main priorities,the Governor of Bank Al Maghrib stressed the need to strengthen resilience to shocks through efficient governance,productive fabric consolidation,and mobilization of the private sector to fully play its role in investment and job creation.
Jouahri stressed the importance of enhancing public policy agility to improve the government’s ability to react and adjust to changing circumstances.
He also called for more efforts to preserve macroeconomic equilibria,noting that Morocco’s stability and credibility are strengthening the country’s economic attractiveness at the international level.
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