Economic Conditions and Household Struggles in Morocco
The recent slowdown in inflation has not provided genuine relief for Moroccan households. Recent indicators from the High Commission for Planning reveal a moderate increase in the consumer price index, while food expenses continue to dominate household budgets. Professor Mohamadi El Yacoubi, the president of Marrakech Consulting Group and former president of the Moroccan Professional Organization of Chartered Accountants, explains that the disconnect between macroeconomic statistics and the lived experiences of households stems from a deeper phenomenon: price stabilization follows years of significant increases, failing to erase the accumulated losses.
"A low overall inflation rate does not signify a return to pre-crisis purchasing power. Prices may be slowing down, but households remain unaware as the levels reached are still high," he succinctly summarizes the situation. El Yacoubi believes that Morocco has entered a new phase of the inflation challenge, where the previously observed widespread inflation is giving way to a more targeted inflation affecting essential products that hold considerable weight in daily consumption.
This reality primarily impacts low-income households, for whom food constitutes a significant portion of unavoidable expenses. Consequently, the average inflation indicator inadequately reflects the daily hardships faced by these families. "What matters to a family is not the average inflation rate, but the prices of what they purchase daily," emphasizes El Yacoubi.
Structural Barriers and Economic Reforms Needed
According to the president of Marrakech Consulting Group, this situation is not merely a transient imbalance between supply and demand. Several structural factors continue to drive up food costs. Repeated droughts have diminished agricultural outputs, while rising input costs persistently weigh on production expenses. Additionally, longstanding dysfunctions related to the organization of marketing circuits exacerbate the situation. The proliferation of intermediaries, lack of transparency regarding prices throughout the supply chain, and certain logistical inefficiencies maintain significant disparities between production prices and consumer prices.
El Yacoubi asserts that these barriers will not disappear spontaneously; they require profound reforms rather than superficial interventions. He advocates for the modernization of wholesale and retail markets, clarification of the status of wholesalers, and improved transparency in transactions. The development of short supply chains is also among the identified levers to bring producers closer to consumers and limit certain intermediary margins. According to him, product traceability emerges as another tool for reducing losses throughout the supply chain.
Furthermore, El Yacoubi suggests accelerating reforms in wholesale markets, better structuring of agricultural cooperatives, and more precise regulation of intermediaries' roles. The gradual digitalization of marketing circuits could also enhance visibility regarding physical flows and price levels at each stage.
The third focal point is the enhancement of control mechanisms. He believes that anti-competitive practices must face genuinely deterrent penalties. He also advocates for better access for small producers to wholesale markets and increased transparency regarding quantities sold and margins achieved. For certain essential products, he considers that targeted and temporary measures on prices or taxation could be examined when circumstances demand it.
Beyond the immediate issue of prices, El Yacoubi relates this discussion to the preparation of the 2027 finance bill. In his view, the upcoming budget should reflect a shift in economic priorities following the electoral deadlines. "The PLF 2027 should not merely be a continuity budget; it must be a budget of trade-offs," he asserts.
These trade-offs should particularly focus on balancing redistribution and investment, immediate support for purchasing power, sustainable income creation, and the correlation between public spending volume and economic efficiency. The president of Marrakech Consulting Group emphasizes that social assistance remains essential to protect the most vulnerable households; however, he argues it cannot serve as a permanent solution to the erosion of purchasing power. "One cannot sustainably compensate through transfers for what the economy fails to produce in income," he states, further underscoring that lasting improvements in living standards require increased productivity, enhanced competition, a more dynamic local production landscape, and the creation of better-paying jobs.
Investment, according to El Yacoubi, is another crucial lever for this transformation. On this point, Morocco has already succeeded in attracting large-scale projects in several strategic sectors. The challenge now lies in maximizing their benefits for the national economy. The former president of the Moroccan Professional Organization of Chartered Accountants believes that future investments should be evaluated based on their capacity to create jobs, generate local added value, integrate Moroccan SMEs into value chains, and develop national skills.
This approach is particularly relevant to industries like automotive, aeronautics, agro-industry, renewable energies, digital services, high-value-added services, and tourism. El Yacoubi argues that fiscal policy must complement the necessary conditions for this new phase, suggesting that the PLF 2027 would benefit from prioritizing stability, visibility, and broadening the tax base rather than imposing new constraints on businesses. "A company invests when it can anticipate future conditions. Fiscal stability itself is a factor for investment," he reminds us.
As reported by fr.le360.ma.
