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Rabat – Nearly 80% of Moroccan respondents in a recent survey said that their current financial situation does not allow them to hold savings.
The rate is higher among men of male respondents, and people from rural areas, as 85% and 88% respectively said they are currently unable to hold savings due to their current financial situation, according to a survey from market intelligence company Sunergia.
In addition, age seems to strongly correlate with the trend, as the bulk of respondents who do save money (45%) are 18 to 24 years old.
While the larger majority cited economic hardships as the prime reason for not holding savings, 10% said that the reason why they don’t have savings is that they “like to enjoy life and have fun.” 2% said that it’s the direct result of rising prices, and another 2% cited unstable income.
In its report, the research firm notes that the number of Moroccans who save has dropped from 44% in 2021 to 32% in 2022.
As for the motives behind holding savings, 51% of respondents who save money reported that they do so in case of emergencies, while 13% said they are saving to start a business.
Other reasons for holding savings include “I love saving” at 11%, “for my children’s education” at 11%, “to travel” at 10%, “to buy a house” at 9%, “to buy a car” at 4%, and “as a retirement plan” at 1%.
The lingering effects of the COVID-19 economic crisis, coupled with the ongoing war in Ukraine are continuing to weigh down on the national purchasing power in Morocco echoing an international trend.
Inflation this year in Morocco is set to average 6.3% at the end of 2022, the country’s central bank reports.
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