BAM Official: Morocco must boost domestic investment to sustain growth

Mohamed Taamouti, Director of Economic Studies at Bank Al-Maghrib, emphasized the critical role of domestic investment in generating wealth and creating employment opportunities, during a national conference on investment, employment, and structural transformation held Wednesday at the House of Councillors.

Taamouti said persistent global uncertainty—stemming from the COVID-19 pandemic, the Russia-Ukraine war, and the latest round of U.S. tariffs—poses significant challenges for Morocco’s public policy. However, he asserted that Morocco’s current policy framework is seen as resilient and adaptable, noting the country’s evolution from an agriculture-based exporter to a hub for automotive and aerospace manufacturing.

Since the early 2000s, Morocco has consistently allocated about 30% of its GDP to investment, in an effort to strengthen its economy. This investment, Taamouti noted, was instrumental in driving economic growth during the first decade of the millennium. Yet, he warned that the return on investment has weakened in recent years.

Employment generation has also declined, with each point of economic growth now creating approximately 20,000 jobs—down from 30,000 previously. Taamouti highlighted particularly steep job losses in the agricultural sector, underscoring the need for policy reorientation.

He called for continued investment in political stability as a foundation for long-term progress, stressing the importance of placing the private sector at the center of job creation efforts to ease pressure on public resources.

Taamouti pointed to structural barriers facing Morocco’s economy, including unfair competition from the informal sector, a concern corroborated by data from the High Commission for Planning. Another key challenge is access to financing for businesses, particularly small and medium enterprises (SMEs). While several economic initiatives have aimed to support SMEs, gaps remain.

Despite these hurdles, Taamouti expressed cautious optimism, noting that investment levels in 2024 remained robust, according to current macroeconomic assessments. He concluded by urging the need for regular evaluation of policy choices amid shifting global dynamics and heightened volatility.