Morocco's Growth Fails to Benefit Households, Report Reveals

Economic Growth vs. Household Well-being in Morocco

A recent report by the Omega Center for Economic and Geopolitical Studies, based on 2024 economic data and household living indicators from the second quarter of 2026, reveals a growing disparity between Morocco's economic growth and its impact on daily life for its citizens.

The findings highlight a widening gap between the country's economic expansion and the tangible improvements in household finances. Despite an increase in GDP, many Moroccans are not experiencing corresponding gains in income, savings, or overall living standards.

According to the report, a comparison of 2024 regional accounts with survey data from the second quarter of 2026 shows that the wealth generated by the economy is distributed unevenly across sectors, regions, and social groups. While the economy grew by 4.4% in real terms in 2024, reaching approximately 1,614.6 billion dirhams at current prices, this growth was not evenly spread throughout the country.

The report argues that the pace of economic growth does not always reflect its quality or its ability to create stable jobs. Growth driven by construction and public works tends to be cyclical, while agriculture and fishing remain vulnerable to climate conditions and external market fluctuations. In contrast, growth led by diversified industrial and service sectors is more likely to improve productivity and generate sustainable employment.

Regional Disparities in Economic Contribution

Casablanca-Settat, Rabat-Salé-Kénitra, and Tangier-Tétouan-Al Hoceima together accounted for 58.4% of Morocco's GDP. In contrast, Drâa-Tafilalet and the country's three southern regions contributed only 7.8%, despite some of them recording relatively strong growth.

This concentration of economic activity leaves the national economy heavily dependent on a few key hubs. Any disruption in these areas could have far-reaching consequences for the entire country.

Household Sentiment and Financial Strain

Although Morocco's GDP per capita averaged 43,891 dirhams in 2024, the report emphasizes that this figure does not reflect actual household income. A significant portion of the added value is absorbed by corporate profits, export-oriented activities, or reinvested outside the local economy.

Household sentiment reflects this disconnect. During the second quarter of 2026, 78.3% of households reported a deterioration in their living standards over the previous 12 months, compared to just 5.2% who noted an improvement. Over half (51%) also expected conditions to worsen further in the coming year.

Financial pressures on households remain significant. The savings balance stood at minus 80.9 points, with only 2.6% of households able to save. Meanwhile, 38.7% had to dip into their savings or borrow money to cover daily expenses. Additionally, 65.3% considered the period unfavorable for purchasing durable goods, and 57.2% expected unemployment to rise.

Factors Contributing to the Disconnect

The report attributes this gap to several factors. First, GDP growth does not automatically translate into higher disposable income for households. Second, many fast-growing sectors are capital-intensive rather than labor-intensive, limiting their impact on employment and wages. Third, the 8.7% increase in GDP at current prices, compared to real growth of 4.4%, partly reflects inflation rather than genuine economic expansion.

Higher household spending does not necessarily indicate stronger purchasing power. Rising costs for housing, transport, and services, combined with dwindling savings and increased reliance on borrowing, allow consumption to continue temporarily while financial resilience gradually weakens.

Recommendations for a More Comprehensive Approach

To better assess how economic growth benefits citizens, the center recommends complementing GDP with regional indicators that measure disposable income, savings, household debt, housing and transport costs, median wages, and the share of stable employment.

The report concludes that the key measure of future economic performance should not be each region's contribution to GDP alone, but how much of the wealth created is converted into wages, jobs, skills, local businesses, quality public services, and a genuine improvement in households' ability to save and their overall standard of living.

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