King Mohammed VI, accompanied by Crown Prince Moulay El Hassan and Prince Moulay Rachid, received today, Saturday, at the Royal Palace in Tetouan, Abdellatif Jouahri, Governor of Bank Al-Maghrib, who presented to His Majesty the annual report of the Central Bank on the economic, monetary and financial situation for the year 2022.
In his speech before the king, Jouahri said that the national economy recorded a growth of 1.3 percent during the year 2022, after 8 percent in 2021, affected by a difficult international context and an agricultural season characterized by severe drought.
He explained that despite this unfavorable circumstance and the efforts made by the state to mitigate the impact of price hikes on families and businesses, the public finances situation continued to improve, with the budget deficit declining to 5.2 percent of GDP.
On the level of foreign exchange, the Wali of Bank Al-Maghrib indicated that the dynamism recorded in 2021 continued, supported by the good performance of Morocco’s global professions and of the phosphate sector, highlighting that travel incomes improved to a record level, while the exceptional flow of remittances from Moroccans living abroad continued.
He stressed that these developments made it possible to contain the current account deficit at 3.5 percent, while the official reserve assets of Bank Al-Maghrib were strengthened to the equivalent of 5 and a half months of imports.
Like most countries in the world, he emphasized that Morocco was not spared the sharp escalation of inflationary pressures that marked the year. After an average rate of no more than 1.5 percent over the past twenty years, inflation reached 6.6 percent in 2022, the highest level since 1992.
Faced with such a situation, the governor of Bank Al-Maghrib explained that Bank Al-Maghrib had deliberately tightened its monetary policy to facilitate the return of inflation to levels consistent with the goal of price stability, and thus raised the main interest rate to 2.5 percent at the end of the year.
In parallel, Bank Al-Maghrib ensured adequate financing for the economy, as it continued to meet all liquidity requests submitted by banks and continued to implement its programs designed to support small and medium enterprises.
On the other hand, Jouahri highlighted that the profound changes in the international arena, with the escalation of geopolitical division and economic sovereignty, as well as the recurrence of severe climatic phenomena and the exacerbation of water stress, indicate major challenges that Morocco will face in the coming years.
Faced with these developments, the Wali of Bank Al-Maghrib considered that it is necessary to increase the capacity of public policy to adapt, enhance its flexibility and strengthen the resilience of the national economy.
For this, he stressed that the valorization of human capital must remain at the forefront of priorities, explaining in this regard that two crucial workshops emerge that suggest a quantum leap in this field, the first of which is the workshops for the generalization of social protection, which the king initiated to launch in 2021, while the second workshops are In reforming the education system, for which great efforts have been made for several years.
On the economic front, the Wali of Bank Al-Maghrib affirmed that the modernization of the public sector called for by the King in 2020 would make it possible to correct structural imbalances in public institutions, adding that the strong mobilization to stimulate private investment following the King’s recent speech gives hope for a new impetus for growth and employment.
On another issue, the Wali of Bank Al-Maghrib stressed that the rationalization of public resources has become a vital matter that requires the acceleration of several projects that will enable the production of margins needed to strengthen social safety nets, adding that it has become urgent to complete the reform of the clearing system launched in 2013, as well as the reform of the pension system.
He recorded that the succession of external shocks since 2020 revealed the weaknesses of the economic fabric and the fragility of some segments of the population, noting, on the other hand, that it showed the strength that Morocco had acquired thanks to the strategy of diversifying the economy and the reforms launched during the last two decades.
At the international level, he stated that Morocco was able, under the wise leadership of the King, to impose itself as a reliable partner and a country of peace and stability, which has been of great benefit to it, as evidenced by its exit from the gray lists of the Financial Action Task Force and the European Union, and its benefit from the flexible credit line of the European Union. International Monetary as well as its hosting of the upcoming annual meetings of the International Monetary Fund and the World Bank in Marrakesh.
On this occasion, Abdelatif Jouahri presented to the King the annual report of the Central Bank on the economic, monetary and financial situation for the year 2022.
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