Morocco’s financial system continues to show remarkable resilience, even as global uncertainty and economic headwinds grow more intense. Meeting in Rabat, members of the Coordination and Systemic Risk Monitoring Committee delivered an overall reassuring assessment of the country’s financial health, underlining the national economy’s ability to withstand external shocks.
The country’s growth has held steady, with GDP expanding by 3.8% in 2024—a pace expected to accelerate to 4.6% in 2025, according to forecasts from Bank Al-Maghrib. Inflation remains low and under control, projected at just 1.1% for the coming year. While the current account deficit may widen slightly, Morocco’s foreign currency reserves remain robust, covering more than five months’ worth of imports—an important cushion in a volatile global landscape.
Public finances continue to improve gradually. The budget deficit has been narrowing since 2022 and is expected to reach 3.4% of GDP by 2026, confirming a steady path toward fiscal consolidation. The government’s debt is following the same trajectory, with a downward trend projected for the coming years.
Credit conditions are also showing signs of strength. Lending to the real economy is picking up, with growth estimated at 6% for 2025-2026. This recovery is accompanied by a slight uptick in non-performing loans, though Moroccan banks have so far managed this risk effectively, maintaining stable provisioning levels and benefiting from strong fundamentals. The banking sector as a whole remains in good shape, posting a 24% increase in net profits, driven in part by dynamic market activities.
Other key pillars of the financial system are also contributing to this positive momentum. The insurance sector continues to grow at a healthy pace, particularly in the life insurance segment. Total industry revenues have reached 58.8 billion dirhams, and profitability remains solid. Solvency indicators are strengthening, and recent stress tests confirm that insurance companies are well positioned to withstand potential economic pressures.
The Casablanca Stock Exchange has been on a strong upward trend, with the MASI index gaining 25% since the beginning of the year. While market volatility has increased due to international turbulence, liquidity is improving, reflecting greater investor confidence.
In the bond market, yields are continuing to ease, and both public and private issuance levels remain under control. Meanwhile, mutual funds and other collective investment vehicles are enjoying renewed interest, signaling a broader restoration of trust in the financial markets.
However, not everything is on solid ground. The country’s pension systems remain a key vulnerability, plagued by structural imbalances. Although recent measures have brought modest improvements, comprehensive reform is still urgently needed to ensure their long-term sustainability.
Amid these developments, the Committee also praised Morocco’s progress in combating money laundering and terrorist financing, emphasizing the importance of maintaining momentum as the country prepares for future international evaluations.
With the global economy still fraught with tension and uncertainty, Morocco is striving to preserve the stability of its financial system. This delicate balance depends not only on the strength of its institutions but also on the country’s ability to adapt quickly to an ever-changing international environment.
