The war in Ukraine and the Moroccan economy: A study of the repercussions on purchasing power

Abstract

This article is devoted to a more in-depth analysis of inflation trends in Morocco before and during the war in Ukraine, with the main aim of highlighting the nuances of the impact of this conflict on the purchasing power of Moroccans. Currently, the global economic landscape (and in particular the reality in Morocco) is experiencing widespread instability as a result of the tensions in Ukraine. Morocco is inevitably drawn into this dynamic because of its close links with world markets.

The war has led to heightened uncertainty on the world market, directly affecting Morocco's import costs and exchange rate stability. The purchasing power of Moroccans has been considerably affected. Households are faced with a higher cost of living, which translates into downward pressure on their purchasing power.

The methodology adopted is aimed at a thorough analysis of inflation trends in Morocco before and during the war in Ukraine. The first stage consists of an in-depth review of the systemic literature for Morocco, while the second stage will focus on crucial data collection to analyze the purchasing power of Moroccans. The third point will be reserved for a Contextualization of the situation in Ukraine and Morocco, the fourth point of our paper will present an analysis of the evolution of certain indicators that have a direct relationship with our problematic, namely how the war in Ukraine could have negative repercussions on purchasing power in Morocco. In addition, to finalize our paper with a general conclusion and recommendations.

The theories addressed in this article: classical theory and monetarist theory, which are directly related to the Moroccan research context. Limitations include the lack of integration of specific economic contexts and insufficient consideration of international dynamics.

An in-depth study of the impact of this conflict on the purchasing power of Moroccans leads to conclusions that undeniably underline the direct impact. The war has led to a significant decline in the purchasing power of the Moroccan population. These results highlight the economic challenges facing Morocco in an unstable global context, underscoring the urgent need for in-depth understanding to guide future economic measures and policies. It is therefore crucial to adapt to these changes to mitigate the negative impact on the well-being of Moroccans.

Keywords: Economic situation, inflation, Ukraine, Purchasing power, Morocco.

Classification JEL : D7, E00, E31.

Paper type: Theoretical Research.