Moroccan household spending increases and income inequality grows

A new report by Morocco’s High Commission for Planning reveals average annual household spending rose from $7668 in 2014 to $8411 in 2022, with urban households spending significantly more than rural ones, Hespress reports.

However, spending slowed from 2019 to 2022 due to the Covid-19 pandemic. 

Increased household expenditures can indicate an increase in living standards but it can also indicate a rise in inflation. Inflation in Morocco rose an elevated 6% in 2022, according to Statista. This indicates that the expenditure increase was largely driven by inflation.

Spending priorities shifted over the 2014 to 2022 time period. More was allocated to food and housing, while healthcare along with leisure and cultural expenses dropped. 

Income inequality also widened, with the Gini index rising from 39.5% in 2014 to 40.5% in 2022. Urban-rural disparities remained constant, highlighting ongoing social inequality. The report urges a reassessment of policies to address structural issues impacting living standards.