“The Moroccan economy shows signs of improvement after a challenging year in 2022. The consequences of the conflict in Ukraine, combined with a severe drought, created significant difficulties for us. However, recent data suggests an uptick,” said Governor of Bank Al-Maghrib (central bank – BAM) Abdellatif Jouahri.
In an interview with monthly magazine Global Finance conducted prior to the earthquake that struck Morocco on September 8, Jouahri discussed the country’s economic outlook for 2023. He emphasized that Morocco has continued to perform well on its external balance, thanks to phosphate exports, international tourism, and substantial remittance inflows from Moroccan expatriates.
Jouahri acknowledged that Morocco, like many countries worldwide, has experienced unprecedented high inflation levels. Consequently, Bank Al-Maghrib had to tighten its monetary policy since September 2022, gradually raising the policy rate by 150 basis points.
While inflation has started to steadily decline from its peak of 10.1% in February, it remains above the country’s price stability goals. Morocco’s remarkable resilience can be attributed to its economic diversification strategy, reforms implemented over the past two decades, and proactive government measures.
Jouahri said that the primary challenge facing Morocco is finding the right balance in its monetary policies to combat inflation. Excessive tightening could potentially harm economic growth, employment, and overall financial stability.
Jouahri also highlighted climate change as another significant challenge affecting the central bank’s missions, particularly regarding financial stability. Additionally, he mentioned concerns related to the rise of economic sovereignism, risks and opportunities associated with digital transformation, cybersecurity, and data protection.
Morocco’s economic strengths lie in its political stability, robust state institutions, and a longstanding commitment to open and outward-looking economic policies. The country has laid the foundation for developing its financial system, granting Bank Al-Maghrib the necessary autonomy and independence for effective operation.
Morocco has become a major global player in various sectors, including the automotive and aerospace industries. It achieved the notable feat of being removed from the gray lists of the Financial Action Task Force (FATF) and the EU, and it secured a flexible credit line from the International Monetary Fund (IMF), he concluded.