Rabat – Households in Morocco continue to grapple with slipping living standards, according to a new report by the country’s High Commission of Planning (HCP).
Around 82% of households in a national survey reported that living standards have deteriorated over the past 12 months, said the HCP report.
Only 13% of respondents reported unchanging living standards and 4.4% said that living conditions have actually improved.
Despite reporting declining living standards, Moroccan households’ overall confidence in the economic outlook, as measured by the Household Confidence Index (ICM), saw incremental growth. It went from 44 points in the fourth quarter of 2023 to 35 points in the first quarter of 2024.
Looking forward, nearly 60% of households included in the survey said they expect living standards to slip even further over the course of the following 12 months.
Meanwhile, around a third of respondents – 33% – said they expect living standards to remain level, and only 9.6% expressed optimism that living standards would improve.
When asked about the outlook of the labor market, Moroccan households had an overwhelmingly grim view, with 83% of respondents saying they expect unemployment to hike even further.
Regarding household consumerism trends, the HCP report found that a sweeping 80% consider this year not favorable for the purchasing of durable goods, against only 7.8%.
The report further reveals that a little over half of households – 55% – consider their income sufficient to cover their expenses, 42% report going into debt or resorting to their savings, and only 1.8% report being able to save a portion of their income.
However, over half of respondents – 56% – say that their finances have worsened over the past 12 months, compared to only 3.5% who reported improving finances.
Read Also: HCP: Inflation in Morocco Increased by 2.3% in January 2024
