Akhannouch defends government's economic achievements, institutional reforms to Parliament

Moroccan Head of Government Aziz Akhannouch reaffirmed his government’s commitment to advancing institutional governance and economic reform, emphasizing the country’s improving financial indicators and economic resilience.

Speaking at the House of Councillors during a monthly policy session on Tuesday, Akhannouch stated that strengthening Morocco’s governance model remains at the heart of government action. He highlighted progress in public finance management, institutional reforms, and economic growth, while urging an objective analysis of employment and unemployment figures.

Akhannouch stressed the need for effective monitoring mechanisms to ensure the successful implementation of sectoral projects. “It is no longer enough to have promising sectoral programs; we must institutionalize oversight mechanisms that guarantee their execution,” he said.

The Prime Minister highlighted the government’s participatory approach, which integrates various sectors and stakeholders, and underscored efforts to strengthen inter-ministerial coordination. “We have reinvigorated several intersectoral committees, ensuring their work aligns with Morocco’s territorial and sectoral needs,” he added.

On employment, Akhannouch acknowledged a 0.3 percentage point increase in unemployment in 2024 but stressed that this does not overshadow the government’s efforts to create quality jobs. He pointed to a decline in overall unemployment rates in the final quarter of 2024, dropping below 13%, marking its lowest level in six quarters.

He also clarified that many lost jobs, particularly in agriculture due to drought, were informal, unpaid family workrather than stable employment. Meanwhile, skilled employment rates improved, with 50% of graduates integrated into the workforce by 2023, a 5% rise in regular, salaried jobs between 2018 and 2023, and an 11% increase in permanent and fixed-term employment contracts (CDI/CDD) between 2017 and 2023.

“The industrial, services, and public works sectors continue to expand, reflecting a growing demand for skilled labor,” Akhannouch added.

The government has introduced tax relief measures, including exempting employees earning below MAD 6,000 per month from income tax. Akhannouch also reiterated efforts to gradually unify VAT rates and reduce tax burdens on businesses, particularly in the informal sector.

“We are committed to combating tax evasion and expanding the tax base, while also providing relief for middle-income earners and retirees through progressive tax adjustments,” he noted.

Akhannouch highlighted Morocco’s improving economic outlook, with inflation declining to below 1% in 2024, down from over 6% in 2022 and 2023. This improvement, he noted, was driven by government interventions to stabilize prices and support agricultural inputs.

Despite climate-related challenges, Morocco’s non-agricultural sectors grew by 5.4% in Q3 2024, up from 3.2% in 2023, while the overall GDP growth rate reached 4.3%.

In his address, the Prime Minister pointed to key economic achievements, including a 7.6 percent growth in the secondary sector, particularly in manufacturing and public works.

He noted that the number of tourists visiting Morocco reached a record-breaking 17.4 million in 2024, marking a 35 percent increase from 2019 and generating over MAD 112 billion in revenue.

Foreign direct investment surged by 24.7 percent, reaching MAD 43.2 billion by the end of 2024. Remittances from Moroccans abroad rose to MAD 117.7 billion, up from MAD 115.3 billion in 2023, while national exports increased by 5.8 percent, reaching MAD 455 billion.

These factors helped reduce the budget deficit to below 3.9% in 2024, compared to 4.4% in 2023 and 7.1% in 2020. The government aims to further lower the deficit to 3.5% in 2025 and 3% by 2026.

Akhannouch reaffirmed Morocco’s commitment to public sector reform, aligning with King Mohammed VI’s directive for a deep restructuring of state-owned enterprises. The government’s strategy focuses on enhancing efficiency, improving governance, and clarifying the roles of public institutions to optimize their economic and social impact.

Concluding his address, Akhannouch urged all political actors—both majority and opposition—to move beyond political divisions and focus on sustaining Morocco’s economic momentum and international standing.

“The long-term success of our reforms requires a collective commitment to effective governance and strategic policymaking,” he stated, emphasizing the need for cooperation in shaping Morocco’s future.