Morocco: Improvement in Household Purchasing Power by 5.1 Points in 2024

According to a report from the High Commission for Planning (HCP) regarding the national accounts of institutional sectors for 2024, the general consumer price index rose by 0.9%, leading to a 5.1-point improvement in household purchasing power compared to 1.8 points in 2023. The report also indicates that gross disposable income (GDI) for households increased by 6.7%, reaching 1,059.7 billion MAD in 2024. Employee compensation contributed 45.3% to this income, with a growth rate of 6.7%. Mixed income, which includes the gross surplus from housing services, accounted for 39.4% of household GDI and experienced a 4% increase. Additionally, net property income saw a substantial rise of 10.6%. This income, along with social benefits and other net transfers, contributed 32.9% to household GDI. However, income and wealth taxes, primarily from salary taxes and social contributions, negatively impacted the formation of disposable income by 17.6%. Regarding final household consumption expenditure, it absorbed 89.2% of gross disposable income. Consequently, the household savings rate stood at 11.3%. Social transfers in kind increased by 9.5%, compared to 4% in 2023. As a result, effective final consumption of households reached 1,080 billion MAD. Per capita, the disposable income of households amounted to 28,808 MAD in 2024, reflecting a 6% increase over the previous year.