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Morocco’s progress in poverty reduction overshadowed by growing inequalities
Morocco has achieved notable progress in reducing poverty and improving human development over the past two decades. However, the persistence of social and regional disparities poses significant challenges to sustainable and inclusive growth. A recent report by the High Commission for Planning (HCP) sheds light on the nation’s achievements and the vulnerabilities that threaten them.
Human development milestones
In 2023, Morocco entered the category of countries with high human development, attaining a Human Development Index (HDI) of 0.710 a 55.7% increase since 1990. This placed Morocco 120th out of 191 nations, a testament to its steady economic and social advancements.
Poverty reduction as a defining achievement
Extreme poverty in Morocco dropped to a historic low of 0.3% by 2022, achieving the United Nations’ first Sustainable Development Goal. Absolute poverty also saw a sharp decline, falling from 15.3% in 2001 to 1.7% in 2019.
However, the COVID-19 pandemic, rising inflation, and recurrent droughts have reversed some of these gains. By 2022, absolute poverty more than doubled to 3.9%, with rural areas disproportionately affected. Poverty rates in rural regions reached 6.9%, compared to 2.2% in urban areas.
Shifting patterns of vulnerability
Economic fragility is no longer confined to rural areas, with urban centers increasingly experiencing rising vulnerability. By 2022, nearly half (47.2%) of Morocco’s vulnerable population resided in cities, up from 38% in 2014. The urban middle class faces growing risks, often lacking adequate safety nets to address inflation and job instability.
The number of vulnerable Moroccans surged from 2.6 million in 2019 to 4.75 million in 2022, highlighting a broader segment of the population at risk of slipping into poverty.
Growing income inequality
After years of gradual improvement, income inequality has widened again. The Gini index rose from 38.5% in 2019 to 40.5% in 2022. The poorest 20% of households experienced a steep annual decline in living standards of 4.6% between 2019 and 2022, while the wealthiest 20% saw a smaller decline of 1.7%. As a result, the wealthiest half of the population increased their share of total consumption to 76.1% by 2022.
Multidimensional poverty: progress with disparities
Morocco has made significant strides in reducing multidimensional poverty, which incorporates education, health, and living conditions. Rates fell from 11.9% in 2014 to 6.8% in 2024, with education contributing nearly half of the improvements.
Despite this progress, rural-urban disparities remain stark. Multidimensional poverty in rural areas stood at 13.1% in 2024, more than quadruple the 3.0% rate in urban areas.
Bridging the gap for inclusive growth
Morocco’s remarkable progress in poverty alleviation and human development reflects its national efforts. Yet, the persistence of inequality and geographical imbalances underscores the need for stronger social safety nets and policies aimed at bridging the rural-urban divide. Achieving inclusive and resilient growth will require prioritizing these issues to ensure that all segments of society benefit from the nation’s progress.