HCP: Improvement of Household Purchasing Power by 5.1 Points in 2024

Improvement in Household Purchasing Power in Morocco

Household purchasing power in Morocco has increased by 5.1 points in 2024, compared to just 1.8 points in 2023, according to the High Commission for Planning (HCP).

"In light of the 0.9% increase in the general consumer price index recorded in 2024, household purchasing power has improved by 5.1 points, compared to the 1.8 points noted in 2023," states the HCP in a recent informational note regarding the national accounts of institutional sectors for the year 2024.

The report also reveals that gross disposable income (GDI) for households rose by 6.7% to 1,059.7 billion dirhams in 2024. Employee compensation accounted for 45.3% of this income, showing a growth of 6.7%.

Mixed income, which includes the gross surplus from housing services, represented 39.4% of household GDI and experienced a growth rate of 4%.

Moreover, net property income saw a significant rise of 10.6%. This income, alongside social benefits and other net transfers, contributed 32.9% to the households’ GDI.

However, income and wealth taxes, primarily composed of salaries tax and social contributions, negatively affected the formation of households’ disposable income by 17.6%.

Regarding final consumption expenditure, households utilized 89.2% of their gross disposable income. As a result, the household savings rate stood at 11.3%.

Additionally, in-kind social transfers increased by 9.5%, up from 4% in 2023. Consequently, the actual final consumption of households reached 1,080 billion dirhams.

Per capita, the disposable income for households reached 28,808 dirhams in 2024, reflecting a 6% year-over-year increase.