Morocco’s remittances reached $11.8 billion in 2023, an increase of 5.2%, according to data shared by the June edition of Migration and Development Brief, published by the World Bank. These figures make the North African Kingdom the second largest recipient of remittances in the MENA region, after Egypt.
“Remittance flows to the country have consistently exceeded FDI (foreign direct investment) flows and have been a vital part of the Moroccan economy, accounting for 8.2 percent of the country’s GDP,” the World Bank said in its report.
During the year 2023, the pace of remittances from Moroccans living abroad “remained strong”, especially after the tragic earthquake that occurred in September 2023, in the heart of the High Atlas Mountains, killing thousands of people.
“This is consistent with the findings of studies that demonstrate the counter-cyclical nature of remittance flows, which tend to increase after natural disasters in migrants’ countries of origin,” the report explains.
Remittances in the MENA region affected in 2023
Regarding remittances to the Middle East and North Africa in general, the report highlighted that in 2023, remittances decreased by 15% to $55 billion, down from 3.2% compared to 2022, mainly due to a sharp decline in entries into Egypt. In 2024, remittances to the MENA region are expected to rebound by 4.3%.
The World Bank’s forecast suggests that “remittances to the Middle East and North Africa will be affected by the difficult situation facing oil-importing countries in the region, such as Egypt, Jordan, Lebanon, Morocco and Tunisia.” In contrast, oil exporters in the region, such as Iraq and Algeria, “will benefit from higher hydrocarbon prices,” the report said.
Globally, although remittances to low- and middle-income countries increased sharply in 2021-2022, they declined in 2023 to an estimated $656 billion.
The modest growth rate of 0.7% in remittances reflects wide variations across regions, but they remained an important source of external financing for developing countries in 2023, supporting the current accounts of many food-insecure and indebted countries. In 2023, remittances surpassed foreign direct investment (FDI) and official development assistance.
Remittances to low- and middle-income countries are expected to grow at a faster rate of 2.3% in 2024, although this growth will be uneven across regions.
