Interest Rates Remain Unchanged Amidst Falling Inflation
In a crucial decision reflecting economic stability, Morocco’s Central Bank, known as Bank Al-Maghrib, has opted to maintain its key interest rate at 2.25%. This decision follows noticeable deceleration in food prices and an overall slowdown in inflation, which dropped from an average of 2% in the first quarter to 0.4% by May. During the recent board meeting in Rabat, comprehensive analyses of both national and international economic developments resulted in this conclusion, signifying a stable monetary environment.
Projections Indicate Moderate Inflation in Coming Years
Future economic forecasts provided by Bank Al-Maghrib suggest that inflation may stabilize at about 1% by 2025, eventually reaching 1.8% in 2026. Core inflation is projected to mirror this trend. These projections are encouraging, particularly against a backdrop of heightened activity in non-agricultural sectors. Such sectors have been pivotal in Morocco’s broader economic landscape due to infrastructural investments aimed at combating climate change impacts and preparing for high-profile international events slated for 2030.
Prospects for Drawn-out Economic Growth
Bank Al-Maghrib foresees a strong economic growth trajectory, predicting a 4.6% expansion this year. Although a slight deceleration to 4.4% is anticipated by 2026, the overall economic outlook remains positive. Notably, the agricultural sector is expected to witness a 5% growth by 2025, supported by an estimated cereal harvest of 44 million quintals. In 2026, predictions adjust for a 3.2% growth relying on an average cereal production of 50 million quintals.
Investment Drives Non-Agricultural Sectoral Growth
Investment dynamics continue to inspire optimism in Morocco’s non-agricultural domains. Projections reveal an anticipated growth of 4.5% in these sectors for both 2025 and 2026. This growth is chiefly fueled by aggressive infrastructure investments, further securing Morocco’s economic resilience. Positive trends in employment corroborate the upward trajectory in economic recovery, a development supported by recent forecasts that underline a sustained phase of growth over the medium term.