The top 1% of the population holds 50% of the total wealth
The Average Moroccan
The average net worth of Moroccan adults is $13,000 whereas the median sits at $4,000 only.
The average net worth includes dept, financial wealth, and non-financial wealth. The latter represents the largest portion.
The median net worth of Moroccan adults ($4,000) is above Africa’s median ($1,000) and below the world’s median ($7,000).
The net worth of Moroccan adults has steadily increased over the past 20 years. The gap between the average and median wealth has also widened after 2010, which suggests increased disparities between the poorest and the wealthiest.
A strong correlation between Morocco’s and the world’s average wealth suggests that Morocco’s wealth is in pace with the rest of the world.
Wealth Distribution Models
75% of Moroccan adults have a net worth of less than $10,000. Less than 0.1% of Moroccan adults are millionaires.
In order to analyze wealth distribution, we invoke two concepts used in economics: the Lorenz curve and the Gini coefficient.
The Lorenz Curve
The Lorenz curve is a graphical representation of the distribution of wealth, where it shows for the bottom x% of the population, what percentage (y%) of the total wealth they have. The line at 45 degrees thus represents perfect equality of wealth.
The bottom 75% of Moroccan adults holds 10% of the total wealth, whereas the top 1% holds almost 50% of the total wealth.
The Gini Coefficient
The Gini coefficient measures the inequality among values of a frequency distribution (for example, levels of wealth). A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has the same net worth). A Gini coefficient of one (or 100%) expresses maximal inequality among values (e.g., for a large number of people where only one person has all the income and all others have none). The Gini coefficient is usually defined mathematically based on the Lorenz curve.
The Gini coefficient of Morocco is about 76%, below Africa’s and Europe’s average of 82%. This means that there is relatively less inequality in Morocco compared to the rest of the world.
The data displayed in this article comes from the 2019 Global Wealth Report, published by Credit Suisse Research Institute on October 21.