Moroccan Households Between the Hammer of Rising Prices and the Anvil of Debt: 42% Resort to Borrowing, Only 2% Manage to Save

Recent data released by the High Commission for Planning reveals that the vast majority of Moroccan households are facing persistent financial difficulties, amid a clear inability to save and continued pressure from the high cost of living.

In the first quarter of 2025, 55.8% of households reported that their income barely covers their expenses. Meanwhile, 42% had to either borrow money or deplete their remaining savings to meet daily living costs. In contrast, only 2.2% of households were able to save a portion of their income — a stark indicator of the fragile financial state of Moroccan families.

When evaluating their current financial situation, households continued to express a negative outlook, with the balance of this indicator standing at -39.8 points. This marks a decline consistent with the previous quarter’s trend (-38.9 points), underscoring the sustained financial strain on middle- and lower-income groups.

Households’ perceptions of their financial situation over the past 12 months have grown even more pessimistic: 53.3% said their situation had worsened, while only 4% observed an improvement. This resulted in a balance of -49.3 points, highlighting a deterioration in both purchasing power and financial reserves.

Looking ahead, future expectations remain bleak. Just 14.6% of households expect their financial situation to improve over the coming year, compared to 31% who foresee further decline. This yields an expectations balance of -16.4 points, pointing to an overall climate of caution and pessimism.

In terms of savings prospects, only 11.2% of households believe they will be able to save in the coming months, while 88.8% say they won’t — keeping the savings indicator at a sharply negative -77.6 points.

The ongoing surge in food prices remains a major stress factor: 97.6% of households reported a rise in prices over the past year, and 81.6% expect this trend to continue. The balance of this inflation indicator stands at -80 points, highlighting the direct impact of inflation on household budgets.

Overall, the economic situation of Moroccan households paints a fragile picture of daily life — marked by difficulties in saving, diminished hope for improvement, and persistent inflationary pressure. The first-quarter indicators of 2025 confirm that restoring confidence in future financial stability remains a distant goal without concrete economic intervention.

Source: Fes News Media

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