Morocco’s Central Bank, Bank Al-Maghrib (BAM), reported a monthly variation of 1.1% in non-performing loans by households across various banks and financial institutions, reaching 38.7 billion MAD.
In the economic, monetary, and financial situation report for January 2024, the Central Bank reported an average annual growth (Nov. 2023) of 3.1% in the value of loans that households contracted and have been struggling to repay.
The total value of non-performing loans by the end of the previous year totaled 94.6 billion MAD, demonstrating a marginal monthly decline of 0.6%.
In November, households secured loans amounting to 986.7 billion MAD, posting a monthly average rise of 0.3%. This comprised 57.5 billion MAD in consumer loans and 243.5 billion MAD in housing loans.
The report also showed that in November 2023, Morocco experienced a 0.3% monthly decrease in the Consumer Price Index (CPI), largely influenced by a 1% drop in volatile food prices.
Inflation decreased from 4.3% in October to 3.6% in November, the lowest since January 2022. Core inflation also decelerated, reaching 3.3%. The decline in November’s inflation is attributed solely to a slowdown in the progression of goods prices, particularly processed goods.
Concerning the international environment, global economies, apart from the United States, are still exhibiting signs of downturn due to geopolitical tensions, tightening financial conditions, and persistently high inflation.
In Q3 of 2023, the U.S. experienced a surge in growth to 2.9%, attributed to increased consumer spending, investment, and exports. Meanwhile, the Eurozone saw economic activity stagnate, with Germany contracting by 0.4% and France, Spain, and Italy experiencing decelerations.