Morocco Records 5.1-Point Increase in Real Purchasing Power as Incomes Rise

Rabat  – Moroccan households experienced a clear improvement in purchasing power in 2024, supported by rising incomes and low inflation, according to newly released national accounts data by the High Commission for Planning (HCP).

Household disposable income grew by 6.7% to reach MAD 1.059 trillion ($114 billion), an increase that outpaced the price levels recorded during the year. With inflation at 0.9%, real purchasing power improved by 5.1 points, a stronger gain compared to the 1.8-point rise in 2023.

Wages continued to support household finances, representing 45.3% of total income and growing at the same rate as disposable income. 

Mixed income, which includes self-employment and housing services, also progressed by 4%. Property income, social benefits, and transfers provided an additional boost, increasing by 10.6% and accounting for nearly a third of household resources.

Taxes and social contributions continued to weigh on earnings by absorbing 17.6% of income. Even so, household consumption remained strong and accounted for 89.2% of available income. 

Effective consumption reached MAD 1.080 trillion ($116.6 billion), reflecting sustained demand across various sectors.

Per capita disposable income rose to MAD 28,808 ($3,110), up from MAD 27,176 ($2,935) a year earlier. Combined with low inflation, this increase translated into a visible easing of pressure on living standards for many families.

At the broader economic level, Morocco recorded nominal GDP growth of 7.9%, reaching MAD 1.596 trillion ($172 billion) in 2024. 

While corporations generated nearly half of the country’s wealth, households remained the largest contributor to gross national disposable income with a 63.1% share.

Household savings reached 11.3% of disposable income and contributed to a wider rise in national savings, which grew by 11.6% to MAD 461.7 billion ($50 billion).

Despite this increase, households contributed less to national savings compared to corporations, whose investment efforts drove a significant part of the year’s economic activity.

Overall, the combination of rising incomes, contained inflation, and steady consumption provided a favourable environment for household purchasing power, offering some relief at a time marked by uncertainty in many global economies.