Morocco’s Urban-Rural Wealth Gap Widens, National Survey Finds

Conducted by the High Commission for Planning (HCP), this survey reveals deep income disparities between rural and urban areas, knowing that the average annual household income is 89,170 dirhams. While in urban areas this income reached 103,520 dirhams, it fell to 56,047 dirhams in rural areas, the study notes, highlighting the striking inequalities between these two areas, in terms of economy and in terms of employment, education and infrastructure.

According to the HCP survey, 72% of Moroccan households earn an income below the national average. A rate that confirms the still very low standard of living of the majority of the population and a concentration of wealth in the hands of a minority, analyzes L’Économiste. In urban areas, wages account for 36.4% of income, and only 29.5% in rural areas. This difference is due to the predominance of the informal sector and agriculture in rural areas where incomes are irregular and lower.

The study also highlights a widening of social gaps, noting a ratio of 7.1 between the highest and lowest incomes, up from 6.2 recorded in 2019. Measures are being considered to reduce these inequalities and promote social justice and more inclusive growth. Among them, raising the minimum wage and regularizing informal jobs are high on the agenda.

This solution will help improve the situation of low-income households. Structural reforms must also be undertaken in the agriculture and services sectors, where the informal sector is predominant, in order to improve working conditions and remuneration. To support the most vulnerable households, the extension of social coverage and the generalization of health insurance are necessary.

The sustainable reduction of inequalities should also go through the creation of businesses and the revitalization of the labor market. In this sense, the State could grant tax incentives, facilitate access to financing and support young entrepreneurs. In addition, the authorities should review their public policies by prioritizing strategic sectors such as technological innovation, the green economy and local industrialization, to reduce territorial gaps and ensure better redistribution of wealth.