Morocco’s economy grows in 2023, with higher GDP and improved household finances

In 2023, the national economy recorded a Gross Domestic Product (GDP) of 1,463.3 billion dirhams (MAD), reflecting a 10% increase compared to 2022, according to the High Commission for Planning (HCP).

The corporate sector (both financial and non-financial) was the largest contributor to national wealth, accounting for 45.1% of GDP, the HCP reports in its note on the national accounts of institutional sectors for 2023.

The public administration sector contributed 15.2% of GDP, down from 16.3% the previous year. Meanwhile, the contribution of households and non-profit institutions serving households (NPISHs) increased to 29.6% of GDP, up from 28.6% in 2022.

Taxes, net of subsidies, on production and imports rose by 0.5 percentage points compared to 2022, reaching 10.1% of GDP.

As for Gross National Disposable Income (GNDI), it grew by 9.7% in 2023, reaching 1,575.6 billion MAD. This increase was driven by a 10.5% rise in the gross income of corporations (both financial and non-financial), a 9.7% increase for households and NPISHs, and an 8.9% rise for public administrations.

The institutional sectors’ contributions to GNDI were 64.3% for households and NPISHs, 19.6% for public administrations, and 16.1% for corporations (including 2% for financial companies).

Household disposable income (RDB) grew by 9.6% in 2023, reaching 996 billion MAD, compared to a 4.6% increase in 2022. Employee compensation contributed 45% to this income, with a 5% rise.

Mixed income, including gross housing service surplus, represented 40% of household RDB and grew by 14%.

Property income recorded a sharp 26% increase, and, combined with social benefits and other net transfers, accounted for 31.9% of household disposable income.

However, income and wealth taxes, mainly from salaries and social security contributions, negatively impacted household disposable income, contributing -16.9%.

Household final consumption expenditure absorbed 88.9% of their gross disposable income, resulting in a savings rate of 11.4%.

Social transfers in kind increased by 4.1%, compared to 5.7% in 2022. As a result, effective final household consumption reached 1,008.3 billion MAD, up from 934.3 billion MAD the previous year.

Per capita, household disposable income reached 26,903 MAD in 2023, up from 24,791 MAD in 2022, marking an 8.5% increase. Following a 6.1% rise in the general consumer price index in 2023, households’ purchasing power improved by 2.4 points, after a 3-point decline in 2022.