Rabat – Moroccan households continued to bear the burden of inflation in 2022, a new report from the High Commission of Planning (HCP) shows.
Published on Monday, the report shows that despite household income growth, purchasing power had dipped by 2.5% in 2022.
According to the report, while the Gross Disposable Household Income (GDHI) in 2022 rose by 5.2% to reach MAD 910.6 billion ($90 billion), inflation continues to hinder national purchasing power.
The rise in households’ income is primarily caused by the substantial 46.5% contribution from employees’ compensation, while mixed income, including the surplus from housing services, contributed to 38.7% of the total GDHI.
Factors like net property income, social benefits, and other net transfers combined contributed 30.9% to the increasing GDHI, with income, wealth taxes, and social contributions reaching a share of 16.1%.
Despite the growth in income, the final household consumption expenditure rose substantially, absorbing a staggering 89.3% of the gross disposable household income, leaving the household savings rate at 11.2% for 2022.
In-kind social transfers – government-backed payments provided in the form of goods or services – saw a rise of 9.8%, down from the 11% hike in 2021.
The decline of in-kind social transfers resulted in a significant increase in actual final household consumption, which reached a staggering MAD 936.4 billion ($93.5 billion), up from the previous MAD 863.4 billion ($86.2 billion) in 2021, HCP data indicates.
On a per capita basis, household disposable income jumped to MAD 24,833 ($2,442) in 2022, marking a solid 4.1% increase from MAD 23,845 ($2,345) in 2021.
The growth, however, was undermined by a significant 6.6% surge in consumer goods prices, leading to a 2.5-point decline in household purchasing power. The decline comes after a robust 6.7% increase in 2021.
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