OECD: Further reforms needed

Monetary easing continues and the fiscal stance remains slightly expansionary. This is another observation made by the OECD in its report (  ) on the economic outlook for Morocco. As inflation eased, the central bank continued its easing cycle, cutting its key rate by a further 25 basis points to 2.25% in March 2025, after peaking at 3% in March 2023.

The next BAM Board meeting is scheduled for June 24, 2025. For OECD economists: “The central bank will need to remain vigilant and continue to be data-driven to ensure that inflationary pressures are contained on a sustainable basis, given the heightened uncertainties and tensions in trade policies that could push up the prices of many tradable goods”. According to recent statistics from the High Commissioner’s  Office for Planning (HCP), the consumer price index rose by 1.6% in March 2025, compared with the same month the previous year. “ Further reforms are needed to boost the rate of activity and productivity in the formal sector”, recommends the OECD. Investment, both domestically and internationally, has shown strength. However, progress in reform of State-Owned Enterprises (SOEs) and a strengthening of the anti-corruption framework would encourage private sector investment. It is essential to take full advantage of the favorable demographic dynamic to further stimulate growth. Economic activity is booming, but unemployment remains high, especially among young people, notes the OECD. According to its projections, unemployment should fall below 13% by 2026. However, increasing the rate of activity in the formal sector, particularly among women, and reducing youth unemployment remain major challenges, as does continuing to raise skills levels.

And to recall the situation of the labor market in the 1st quarter of 2025, recently published by the HCP. The unemployment rate fell from 13.7% to 13.3% nationally (-0.4 points), from 17.6% to 16.6% in urban areas (-1 point) and from 6.8% to 7.3% in rural areas (+0.5 points). This rate remains higher among young people aged 15 to 24 (37.7%), women (19.9%) and graduates (19.4%).

Fatim-Zahra TOHRY

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