Casablanca – Morocco has entered the ranks of countries with high human development and has nearly eradicated extreme poverty, according to a series of analytical reports by the High Commission for Planning (HCP). But behind these historic achievements, the institution warns of widening inequalities, growing urban vulnerability, and fragile gains that remain vulnerable to global and domestic crises.

A milestone in human development

In 2023, Morocco crossed into the “high human development” category for the first time, with the Human Development Index (HDI) reaching 0.710. Life expectancy has increased by more than 10 years since 1990, per capita income has more than doubled, and significant improvements were recorded in health and education. The HCP describes this as a historic step in the country’s development trajectory.

The progress is also reflected in the decline of multidimensional poverty, which measures deprivation across education, health, and living conditions. Nationally, the rate fell from 11.9% in 2014 to 6.8% in 2024. The reduction was especially pronounced in rural areas, where it dropped from 23.6% to 13.1%, driven largely by improvements in education.

Extreme poverty nearly eliminated

Perhaps the most striking achievement is Morocco’s success in virtually eradicating extreme poverty. Using the international benchmark of $1.90 a day, less than 0.3% of Moroccans lived below this line in 2022. This means the country has met the first of the United Nations’ Sustainable Development Goals (SDGs): ending poverty in all its forms everywhere.

At the national level, extreme poverty declined by 0.7 percentage points between 2014 and 2022. The drop was 1.3 points in rural areas and 0.2 points in urban areas, confirming Morocco’s steady progress in combating the most severe forms of deprivation.

Absolute poverty, measured by national standards, also saw a sharp long-term decline, from 15.3% in 2001 to 1.7% in 2019. Yet these gains proved fragile in the face of crises. By 2022, the rate had risen again to 3.9%, with the increase especially sharp in cities. The number of urban poor jumped from 109,000 in 2019 to 512,000 in 2022, while the rural poor increased more moderately from 513,000 to 906,000.

Purchasing power under pressure

The HCP reports that disposable income per capita rose 2.5 times between 2000 and 2023, increasing from about $1,134 to nearly $2,784. Between 2000 and 2014, purchasing power grew strongly at 3.5% annually. But the trend slowed between 2014 and 2019, before collapsing in 2020 with the outbreak of COVID-19, which caused a -5.4% drop.

Although 2021 saw a strong rebound, high inflation quickly eroded these gains, leading to another decline of -2.5% in 2022. A modest recovery of 1.5% followed in 2023. Over the longer term, growth in purchasing power has slowed markedly, averaging just 1.1% per year between 2010 and 2023, compared with 2.8% per year between 2000 and 2009.

Rising vulnerability and inequality

Despite progress, Morocco faces widening inequalities. The Gini index, which measures wealth concentration, stood at 40.5% in 2022—nearly identical to its level in 2001—after reaching a low of 38.5% in 2019. This means much of the progress in narrowing disparities has been erased by successive crises.

The number of people living in poverty more than doubled between 2019 and 2022, rising from 623,000 to 1.42 million. At the same time, the number of economically vulnerable people surged from 2.6 million to 4.75 million. Urban areas accounted for much of this rise, with the vulnerable population jumping from 1.03 million to 2.24 million. This shift has changed the geography of vulnerability: by 2022, nearly half of vulnerable groups lived in cities, compared to 62% in rural areas in 2014.

Food inequality has also worsened. The share of household spending concentrated on food rose from 24.2% in 2019 to 31.7% in 2022, reflecting the erosion of purchasing power among low-income families on essential goods.

Territorial and gender divides

The HCP highlights persistent territorial disparities. A Moroccan spends an average of $2,483 per year, but regional gaps are stark: in Casablanca-Settat, annual spending reaches $2,987, while in Drâa-Tafilalet it is just $1,763.

Gender inequalities also remain a major challenge. While girls’ school enrollment has improved significantly and now surpasses boys at the secondary level, women’s participation in the labor market has stagnated at just 19%, compared to nearly 70% for men. The Gender Development Index (GDI) stands at 0.859, reflecting structural gaps that continue to limit women’s economic potential.

A call for a new policy approach

For the HCP, Morocco’s development gains are significant but fragile. The institution calls for a new generation of public policies focused on territorial equity, stronger social protection, and targeted support for vulnerable groups. It argues that the New Development Model must prioritize social balance, gender equality, and spatial justice to prevent the emergence of a “two-speed Morocco.”

The Inequality-adjusted Human Development Index (IHDI) illustrates the stakes: it falls to 0.517, representing a 27% loss compared to Morocco’s nominal HDI. This gap underscores how overall national performance is undermined by internal inequalities.

Morocco’s trajectory over the past two decades shows both remarkable progress and urgent challenges. The country has met global poverty eradication goals and achieved high human development status, but sustaining and deepening these gains will depend on addressing inequality, protecting purchasing power, and ensuring that growth benefits all Moroccans, across regions and social groups.