Moroccan Savings Surge Amid Economic Uncertainty and Job Fears

For a few months now, Moroccans’ savings have been multiplying. Thus, "the balance of current accounts of individuals and Moroccans residing abroad stood at 463 billion dirhams at the end of January 2021, i.e. 42 billion more than a year earlier," while "passbook accounts have accumulated an additional 2.7 billion dirhams," reports L’Économiste. This behavior of households is mainly linked to the fear of unemployment. Thus, "the saving behavior of households is a kind of permanent security reserve against unemployment."

This amount of 110 billion dirhams between cash flow and sight deposits should be directed by the State towards the relaunch of consumption, as it represents almost the cost of the recovery plan, i.e. 11% of GDP. Short-term savings in sight deposits and real estate remain the preferred investments for Moroccans, the daily newspaper said, adding that the Mohammed VI Investment Fund represents "an interesting opportunity to make one’s savings grow in the long term," while being certain that "savings will probably remain invested in the short term in a context of persistent uncertainty, high unemployment, complex public finances and low returns."

What about repositioning on stocks? The daily assures that it will take tact. The 2020 results of companies will reflect the extent of the impact of the health crisis. Even if it will not be the same for everyone, only the ability to readjust business models and anticipate shocks and risks of each company will be rewarded.

As for the interest that the national loan could generate, it will require the offer of more profitable remuneration conditions than the current savings formulas. This loan among Moroccan households would require a lot of communication spending. Moreover, "the loan will have to be repaid by tax or debt. This requires questioning the implementation of the tax reform and the tax equity promised after the tax conference in 2019," concludes the newspaper.