The standard of living in Morocco experienced a general improvement between 2014 and 2022, characterized by growth from 2014 to 2019, followed by a slowdown between 2019 and 2022 due to the impact of the Covid-19 pandemic, according to a recent report by the High Commission for Planning.
During this period, the average annual household expenditure rose from MAD 76,317 in 2014 to MAD 83,713 in 2022 at the national level, amounting to MAD 95,386 in urban areas and MAD 56,769 in rural areas.
On an individual basis, average annual spending increased from MAD 15,876 in 2014 to MAD 20,658 in 2022. Adjusted for constant prices, this reflects an average annual growth rate of 1.1% between 2014 and 2022, with a notable increase of 3.1% from 2014 to 2019, followed by a decline of -3.1% from 2019 to 2022.
More on food, less on leisure
The report highlights a shift in spending priorities, with the share of food expenditures rising from 37% in 2014 to 38.2% in 2022, and housing and energy costs increasing from 23% to 25.4%.
Spending on healthcare decreased from 6.1% to 5.9%, while transportation expenses dropped from 7.1% to 5.8%.
Notably, household equipment expenses fell from 3.2% to 2.3%, and leisure and cultural spending declined significantly from 1.9% to 0.5%.
Uneven growth
The report reveals disparities in the evolution of living standards across different social groups. The bottom 20% of the population experienced an annual increase of 1.1% between 2014 and 2022, driven by a 3.9% rise from 2014 to 2019, followed by a -4.6% decline from 2019 to 2022.
Tthe wealthiest 20% saw a 1.4% annual increase, with a 2.8% rise between 2014 and 2019 and a -1.7% drop from 2019 to 2022.
The middle class recorded a modest 0.8% annual growth, marked by a 3.3% increase from 2014 to 2019 and a -4.3% decline from 2019 to 2022.
Overall, the wealthiest and poorest segments witnessed improvements, whereas the middle class did not significantly benefit from economic growth or redistributive policies.
Widening inequality
Income inequality, as measured by the Gini index, increased from 39.5% in 2014 to 40.5% in 2022, after temporarily declining to 38.5% in 2019.
Urban-rural disparities remained unchanged, with urban residents maintaining a living standard nearly 1.9 times higher than their rural counterparts from 2014 to 2022, despite a brief reduction to 1.8 times in 2019.
The report also underscores the growing vulnerability of social groups not targeted by social safety nets, leading to an increased risk of poverty, affecting urban and rural areas alike.
It suggests that the downturn in living standards observed from 2019 to 2022 necessitates a reassessment to distinguish between structural and temporary factors.
The findings are based on the HCP’s national survey conducted between March 2022 and March 2023, covering a representative sample of 18,000 households across all regions of Morocco. This survey follows a similar study conducted in 2014 and a partial survey in 2019, providing updated insights into the socioeconomic dynamics shaping Moroccan society.
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