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Morocco’s Household Confidence Plummets to 15-Year Low, HCP Survey Reveals

Rabat – The latest Permanent Household Survey conducted by the High Commission for Planning (HCP) revealed that household confidence in Morocco has reached its lowest level since the survey’s inception in 2008. 

The report, which analyzed various indicators of household well-being, paints a gloomy picture of the country’s economic landscape during the second quarter of 2023.

HCP indicated that the Household Confidence Index (HCI) in Morocco has dropped to 45.4 points, down from 46.3 points in the previous quarter and 50.1 points in the same quarter of 2022.

This decline in household confidence suggests a growing pessimism among Moroccan households regarding their financial situations, as well as the overall state of the country’s economy, according to the survey.

It highlighted a deteriorating perception of several key factors affecting household well-being, with a staggering 87.3% of households reporting a sharp drop in their living standards over the past 12 months. 

Meanwhile, only 2.7% of Moroccan households experienced an improvement, whereas 10.0% reported no change. This negative sentiment is evident in the net opinion balance, which stands at -84.6 points, the lowest level recorded since 2008.

In addition, concerns about unemployment persist in the country, with an overwhelming 85.3% of households expecting the number of unemployed individuals to increase over the next 12 months. 

This apprehension has resulted in a negative net opinion balance of -80.4 points, showing a lack of confidence in Morocco’s labor market.

Published on Monday, the survey also showed that the majority of households (78.8%) see the current economic situation as unfavorable for purchasing durable goods. This sentiment is reflected in a negative net opinion balance of -68.9 points, indicating a hesitancy among households to make significant purchases in the current economic climate.

Households’ perceptions of their own financial situations are also bleak, as more than 44% of households reported relying on debt or dipping into savings to cover expenses. Meanwhile, 53.4% believe their current income is sufficient to meet their needs.

Looking ahead, only 18.5% of Moroccan households anticipate an improvement in their financial situations over the next 12 months, while 24.6% fear a deterioration, reflecting a lack of confidence in the country’s economic prospects.

The survey also underlined concerns about the capacity to save, with a majority of 89.7% of households not expecting to be able to save money over the next 12 months. 

Nearly all households (98.1%) reported increased food prices over the past year, intensifying the financial strain on Moroccan households. More than 70% of Moroccan households expect this trend to persist over the next 12 months, while only 4.8% expect food prices to drop.

The survey’s findings paint a dull picture of the economic situation in Morocco, a reflection of the numerous challenges affecting households’ financial security. 

Source : Morocco World News