Morocco sees inflation cool to 0.4% as government defends social spending strategy

Government Spokesperson Mustapha Baitas said on Thursday that Morocco’s inflation has shown a steady decline in 2025, crediting state interventions in agriculture, purchasing power support, and targeted social programs. 

Speaking at the weekly press briefing following the Cabinet meeting, Baitas emphasized that inflation had been a top concern since the government’s formation.

“These measures involved significant financial commitments and came during a challenging period, marked by global price shocks and prolonged domestic drought,” he said. Nevertheless, he noted, the government succeeded in curbing inflation, which fell to 0.4% in May 2025, down from 0.7% in April, and well below the 2% average seen in Q1. Cumulative inflation for the first five months of 2025 stood at 1.4%, aligning with Morocco’s price stability targets.

On employment, Baitas said it is “central to the government’s social state vision,” though it is still too early to assess the full impact of its strategy. The 2025 Finance Law allocates MAD 15 billion for employment-related programs—MAD 12 billion to stimulate investment, MAD 2 billion for job creation programs, and MAD 1 billion to preserve rural employment.

The government has also launched measures to support very small, small, and medium-sized enterprises (VSMEs), facilitate access to public procurement and export markets, and incentivize investment projects ranging from MAD 1 million to 50 million.

Additional efforts aim to reduce job losses in agriculture, expand cultivated areas, and strengthen the role of ANAPEC, the national employment agency, through integrated job-matching and vocational guidance services.

Baitas reaffirmed the government’s commitment to growth targets outlined in past finance laws, noting that the economy is on track to stabilize around 4% growth, in line with broader program objectives.