LDuring the conference organized by BAM in partnership with the International Monetary Fund (IMF) and the IMF Economic Review, Abdellatif Jouahri said: “At BAM, we continue to maintain the exceptional measures that we deployed during the health crisis so as not to slow down the recovery, but at the same time we remain very vigilant with regard to price trends.”
He recalled in this sense that the central bank was counting on an inflation rate slightly above 5% this year, but which should return to a moderate level next year. In addition, Jouahri highlighted the major challenges that are hampering the recovery of the world economy, which is highly compromised and increasingly uncertain, noting in this sense that the outbreak of the conflict in Ukraine had darkened the outlook for the economy. worldwide, after a rebound in 2021.
Threat of global food crisis
In this regard, he said that the world would not be immune to a food crisis, knowing already, according to the latest World Bank assessments, that between 75 million and 95 million people additional people live in extreme poverty in 2022 compared to pre-pandemic projections.
Turning to inflation, the central bank governor said that with inflation accelerating to levels not seen in decades, central banks face a delicate dilemma: to tighten monetary policy and curb the economy more, or opt for an accommodative orientation with the risk of an accentuation of the price hike.
In addition to the slowdown in the economy, governments are facing increased social needs and pressure to support purchasing power, knowing that their budgetary margins are largely reduced by the health crisis, with very high levels of debt. high and increasingly difficult financing conditions, he said.
“Deep reflection is needed”
Morocco is obviously not immune to the effects of this difficult international environment, he argued, adding that thanks to exceptional mobilization at all levels, the national economy has largely been able to overcome the crisis. health, recording a rebound of nearly 8% in 2021. However, and like everywhere else, it is suffering the consequences of the war in Ukraine, with in particular an increase in the energy bill and strong external pressure on consumer prices.
To deal with crisis situations and difficult circumstances, Jouahri noted that deep reflection was necessary. This would make it possible to define the contours of a real paradigm shift that is needed in terms of the development and implementation of public policy. He also affirmed that beyond simple adjustments of choices and policies, it is indeed their foundations that should be questioned, like what was done in the aftermath of the 2008 international crisis. .
In this sense, he said that BAM was making a permanent effort to try to answer questions such as those raised in this conference. “We regularly question our approaches and we adapt our instruments and tools for monitoring, analysis and forecasting. In this sense, we attach great importance to the development of research and openness to the national and international academic world, we have even made it one of the main axes of our 2019-2023 strategic plan.“, he added.
On the other hand, the governor of the central bank specified that this initiative was consolidating the partnership forged with the IMF in several areas and which has been particularly strengthened in recent years, welcoming its materialization and more generally the resumption of the entire process of preparing for the assemblies scheduled for October 2023 in Marrakech.