Moroccans report declining living standards and expect a deterioration of their financial situation.
Rabat – The results of the 2019’s second quarter household survey, conducted by the High Commission for Planning (HCP), show that the overall index of household confidence has continued to fall since last year.
The index of household confidence (ICM) has dropped to 74.9 points compared to 79.1 points recorded the previous quarter, and 87.3 points recorded a year earlier.
The decline in household confidence levels during this quarter stems from the decline of all its sub-indicators (standard of living, unemployment, opportunity to purchase durable goods, and financial situation).
Standard of living
46.2% of households reported a decline in living standards over the last 12 months. 32.9% reported that the standards maintained the same level, while 20.8% noticed an improvement.
Over the next 12 months, 27.3% of households expect a decline in their standard of living. 40.6% believe they will maintain the same level, and the remaining 32% expect to improve their living conditions.
In 2017, the World Bank published a Morocco Economic Memorandum entitled “Morocco 2040- Emerging by investing in intangible capital.”
The memorandum explains that “historically speaking, it is interesting to note that the French had the Moroccans’ current standard of living in 1950, the Italians in 1955, the Spanish in 1960, and the Portuguese in 1965.”
The same source added that between 2007 and 2014, subjective poverty, i.e. one’s own perception of poverty, increased from 42% to 45% across the country, affecting more than 54% of the rural population.
The survey shows that 83% vs. 6.1% of households expect a rise in unemployment levels over the next 12 months.
“Many educated young people leave Morocco to look for better opportunities, 600 engineers leave the country every year,” said Said Amzazi, Minister of Education, in 2018.
Purchase of durable goods
61.4% compared to 20.1% of households participating in the survey consider that the time is not opportune to purchase durable goods. They consider the economic situation unfavorable to such purchase.
Financial situation of households: deteriorating
Regarding income vs. expenses, 62.4% of households estimated that their incomes cover their expenses. 34.2% reported going into debt or using their savings, and 3.4% affirmed being able to save a part of their income.
31.2%, compared to 12.9% of households in 2018, expect an improvement in their financial situation over the next 12 months.