Morocco’s Living Standards Rise, but Urban-Rural Gap Persists

In a note on the main results of the 2022-2023 national household living standards survey, the HCP indicated that the average annual household expenditure increased from 76,317 dirhams (DH) in 2014 to 83,713 DH in 2022 at the national level, with 95,386 DH in urban areas and 56,769 DH in rural areas. The average annual expenditure per person, on the other hand, increased from 15,876 DH to 20,658 DH during the period, the HCP noted, noting a progression at an average annual rate of 1.1% between 2014 and 2022, going from 3.1% between 2014 and 2019 to -3.1% between 2019 and 2022.

The note also reports an increase in food expenditure, from 37% in 2014 to 38.2% in 2022, as well as housing and energy expenditure, which increased from 23% to 25.4% during the period. While hygiene expenses increased from 2.7% to 3.9%, communication expenses increased from 2.2% to 2.6%, the HCP notes, however, a decline in health care expenses, which fell from 6.1% to 5.9%. The same trend is observed at the level of transport expenses, which fell from 7.1% to 5.8%, household equipment expenses, which fell from 3.2% to 2.3%, and leisure and culture expenses, which went from 1.9% to 0.5%.

In detail, the standard of living of the poorest 20% increased by 1.1% per year between 2014 and 2022, with an increase of 3.9% between 2014 and 2019, and a decrease of 4.6% between 2019 and 2022. The standard of living of the wealthiest increased by 1.4% over the period, supported by a 2.8% increase between 2014 and 2019 and a 1.7% decrease between 2019 and 2022. As for the intermediate social category, its standard of living increased by 0.8%, with a 3.3% increase between 2014 and 2019 and a 4.3% decline between 2019 and 2022.

Furthermore, inequalities in standard of living, as measured by the Gini index, widened between 2014 and 2022, rising from 39.5% to 40.5%, after falling to 38.5% in 2019, due to Covid-19. The HCP notes, however, stability in terms of disparities between urban and rural areas, with their average standard of living being 1.9 times between 2014 and 2022 and 1.8 times in 2019. Nevertheless, the HCP observes that social policies have a significant impact on reducing poverty, while noting a more acute vulnerability of the marginalized social strata.

A new assessment of the standard of living of households is necessary to determine the structural and cyclical causes of the decline in the standard of living of Moroccans from 2019 onwards, the HCP also notes in its note. This survey was conducted nationwide between March 2022 and March 2023, on a representative sample of 18,000 households from all socioeconomic categories and all regions of the kingdom. It complements the similar survey conducted in 2014 and the partial survey carried out in 2019, and provides updated data on the socio-economic dynamics of Moroccan society.