A recent survey by the Moroccan High Commission for Planning (HCP) has revealed that a significant majority of Moroccan households are struggling with the rising cost of living. The survey, published in mid-October, found that 76.3% of households reported a decline in their living standards over the past 12 months. This is a concerning trend that highlights the challenges faced by many Moroccans in making ends meet.
The survey also found that only 5.2% of households reported an improvement in their living standards, while 18.5% said that their situation had not changed. To cope with the increased costs, 39% of households have had to take on debt or dip into their savings. This is a worrying sign, as it suggests that many households are not able to absorb the shocks of inflation. Furthermore, only 2.8% of households reported being able to save.
The survey also gathered information on households' expectations for the future. A significant majority, 51.7%, of households expect their living standards to decline further over the next 12 months. Only 8.7% of households expect an improvement, while 39.6% expect their situation to remain the same. Additionally, 61.3% of households anticipate an increase in the unemployment rate.
The HCP survey also found that the consumer confidence index (CCI) had declined to 59.2 points, down from 60.1 points in the second quarter of the year. This decline in consumer confidence is likely to have a ripple effect on the broader economy. The survey results are consistent with reports from other sources, which suggest that inflation is affecting many areas of the Moroccan economy.
One of the main drivers of inflation in Morocco is the increase in food prices. The survey found that 95.9% of households reported that food prices had increased. This is consistent with reports from local media, which have highlighted the rising cost of basic goods such as tomatoes and meat. The price of tomatoes has reportedly increased to 15 dirhams per kilogram, while the price of meat has risen to 150-250 dirhams per kilogram.
Morocco is considered one of the countries most vulnerable to fluctuations in the global market. The country's economy is heavily influenced by international trends, and the recent decline in the value of the dirham against the dollar has added to the pressure. The value of imports has increased significantly, which has put a strain on the country's foreign exchange reserves and reduced the purchasing power of households.
The economic challenges facing Morocco are likely to have a disproportionate impact on the most vulnerable members of society. The country's high levels of inequality mean that the effects of inflation are felt most keenly by low-income households. The government will need to take steps to address these challenges and support those who are most affected by the rising cost of living.
Key points
- 76.3% of Moroccan households report a decline in living standards over the past year
- Inflation in Morocco is driven by rising food prices and a decline in the value of the dirham
- The country's high levels of inequality make the effects of inflation felt most keenly by low-income households
