While Moroccan incomes are on the rise, purchasing power continues to decline! This stark reality is highlighted by the National Household Living Standards Survey (ENNVM) conducted by the High Commission for Planning (HCP) between March 2022 and March 2023. At first glance, the average annual household expenditure has risen from 76,317 DH in 2014 to 83,713 DH in 2022. However, an inflation-adjusted analysis reveals a sharp decline in purchasing power since 2019.
Over the entire period, average annual expenditure per person increased from 15,876 DH to 20,658 DH, but when adjusted for inflation, the growth rate dropped from +3.1% (2014-2019) to -3.1% (2019-2022), signaling a significant contraction in real purchasing power. This economic paradox is further compounded by deep structural vulnerabilities. Despite social policies improving living conditions for the most disadvantaged, income inequality (Gini index) widened from 39.5% in 2014 to 40.5% in 2022 (after a low of 38.5% in 2019). Additionally, while both the wealthiest and the poorest segments of the population benefited from economic growth, the middle class was largely left behind. This raises critical concerns about the effectiveness of redistribution mechanisms and wealth distribution in Morocco. These findings call for a reassessment of public policy priorities, as social programs play a crucial role in reducing absolute poverty.
A Middle Class Weakened by Rising Inequality
However, rising inequality and a shrinking middle class present major challenges for the coming years. The Gini index’s expansion and declining purchasing power among certain groups underscore the urgent need for a more ambitious redistribution policy. Furthermore, the economic impact of the COVID-19 crisis has disrupted previous socio-economic progress. Policymakers must now differentiate between temporary shocks and long-term transformations to better adapt public policies to Morocco’s evolving social and economic landscape.
While overall living standards have improved, income gains have been distributed unevenly. Between 2014 and 2022: The poorest 20% saw their living standards increase by 1.1% per year on average. However, this masks disparities: a +3.9% increase (2014-2019) was followed by a sharp -4.6% decline (2019-2022). The wealthiest 20% experienced a 1.4% annual increase, with a +2.8% rise (2014-2019) but a -1.7% drop (2019-2022). The middle class recorded a more moderate 0.8% growth, but with a steep contraction of -4.3% between 2019 and 2022. In other words, the crisis disproportionately affected the middle class, which neither received direct social aid nor had the financial assets to absorb the economic shock.
Declining Poverty, but Growing Vulnerability
The rate of absolute poverty continued to decline, dropping from 4.8% in 2014 to 3.9% in 2022. However, this trend was interrupted in 2019, when poverty reached a historic low of 1.7%. In rural areas: Poverty declined from 9.5% to 6.9%. While in urban areas, a slight increase was observed, rising from 1.6% to 2.2%. In absolute terms, Morocco had 1.42 million people living in poverty in 2022, including:512,000 in urban areas and 906,000 in rural areas. Some regions remain significantly more affected than the national average, including: Fès-Meknès (9%), Guelmim-Oued Noun (7.6%) and Béni Mellal-Khénifra (6.6%).
A Survey Closely Aligned with Social Realities
The National Household Living Standards Survey was conducted by the High Commission for Planning (HCP) between March 2022 and March 2023. This study is based on a representative sample of 18,000 households across all socio-economic categories and regions of Morocco. It builds upon previous surveys from 2014 and 2019, allowing for a decade-long analysis of household living conditions and economic trends.
A Deep Income Divide
The average annual household income in 2022 was 89,170 DH, with a sharp divide between urban areas (103,520 DH) and rural areas (56,047 DH) At an individual level, the average income was 21,949 DH, but with a stark contrast, while urban residents earned an average of 26,988 DH, rural residents earned only 12,862 DH The distribution of income remains highly skewed as 71.8% of households earn less than the national average., 65.9% in urban areas and 85.4% in rural areas. Salaries remain the primary source (35.1%), with a higher share in urban areas (36.4%) than in rural areas (29.5%). Public and private. Transfers, whether public or private account for 21.3% of total income, with a larger share in urban areas (22.8%) than in rural areas (15.1%).
Radia LAHLOU
