Moroccan Household Confidence Plummets Amid Pandemic and Drought Fears

Households are also hit hard by the current crisis. It’s hard not to be downcast in the face of a horizon filled with uncertainties and fears. In addition to the effect of the coronavirus, "the specter of drought has also impacted the morale of households, to the point that the household confidence index (HCI) has dropped to 75.7 points against 79.1 a year earlier", specifies L’économiste.

The deterioration is at such a level that all the components are feeling the harmful effects. According to the newspaper, "more than 42% of households report a deterioration in their purchasing power over the past 12 months, and 35.4% a maintenance at the same level". Over the next 12 months, the situation should still "worsen for 28.5% of households, while 47.5% expect the status quo". Only 1 in 4 households hope for an improvement. It should also be noted that 80% of households live in fear of seeing unemployment rise sharply over the next 12 months.

To this is added the surge in food prices. In the first quarter, nearly "83% of households say that food prices have risen over the past 12 months". And this should continue for 82.8% of households over the next 12 months.