The High Commission for Planning of Morocco (HCP) issued on October 13 the findings of its “Evolution of social inequalities in a context marked by the effects of COVID-19 and rising prices” study.
In order to better understand the evolution of the situation of households, the study refers to the household expenditure structures of the 2013/2014 national survey on consumption and household expenditure and data from the monthly survey on consumer prices, the 2019 national survey on sources of income and the third panel on the impact of the pandemic on the socioeconomic situation of households 2021/2022.
Effects of the COVID-19 pandemic on household living standards
The effect of COVID-19 on social inequalities is estimated by measuring the impact of the variations observed in household consumption, between 2019 and 2021, on the social distribution of the standard of living. It was conducted based on a sample of 12,000 households from October 11, 2021, to February 10, 2022.
Source: HCP
As measured by the Gini index, social inequality increased by almost two percentage points over this period, from 38.5% to 40.3% at the national level, from 37.2% to 39.1% in urban areas, and from 30.2% to 31.9% in rural areas.
Effects of categorical inflation on household living standards
As for the impact of inflation on social inequality, it is estimated by assessing the consumer price index by category of household and its effect on the level and structure of expenditures in its consumption basket.
From January to July 2022, consumer prices rose faster, and the average year-on-year inflation rate reached 5.5 percent, a level five times higher than that recorded between 2017 and 2021.
Source: HCP
As measured by the Gini index, social inequality in living standards increased from 40.3% to 40.5%. The report mentions that “this price surge has accentuated social inequalities: Morocco is back to the poverty level and monetary vulnerability of 2014.”
Combined effects of COVID-19 and categorical inflation on household living standards
Source: HCP
The report states that 3.2 million more people have fallen into poverty (1.15 million) or vulnerability (2.05 million). Nearly 45% of this deterioration in poverty and vulnerability is due to the effect of the pandemic, and 55% to the impact of rising consumer prices.
The report adds that it is estimated, in this regard, that almost seven years of progress toward the elimination of poverty and vulnerability have been lost.