Morocco ranked second in Africa in terms of household debt, with such debt amounting to approximately 30% of its Gross Domestic Product (GDP), according to a recent report from the European Investment Bank (EIB).
This places Morocco among only four African nations that have surpassed the debt levels of emerging markets.
According to the EIB, South Africa tops the list with household debt exceeding 30% of its GDP.
Tunisia and Nigeria follow Morocco, rounding out the quartet of African countries with debt levels surpassing those of emerging markets.
The report noted that while all African nations have debt levels below the global averages for emerging markets and developing economies, the growing African economies and the maturation of credit markets present significant growth opportunities for banks and a potential source of investment funding.
The EIB report said that corporate debt in African nations generally exceeds household debt. Only six African countries have corporate debt below 10% of their GDP, compared to 13 countries for household debt.
Morocco ranks second in terms of corporate debt, with such debt amounting to nearly 20% of its GDP.
These findings align with a previous report on financial stability released by Morocco’s central bank in August.
The report revealed that total Moroccan household debt reached approximately MAD 411.6 billion in the previous year, representing a 3.2% annual increase and equating to 28% of Morocco’s 2023 GDP.
Data from the High Planning Commission also indicate that 42.2% of Moroccan households have either depleted their savings or resorted to borrowing.
Moreover, the percentage of households able to save a portion of their income is a mere 3%.
The commission’s survey on household conditions during the third quarter said that over 80% of Moroccan households reported a decline in their living standards over the past 12 months.
Consequently, only 3% of households managed to save a portion of their income during the same period.
The post EIB report: Morocco ranks second in Africa for household debt appeared first on HESPRESS English – Morocco News.
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