Morocco positions itself as the second largest recipient of remittances in the Middle East and North Africa (MENA) region, according to the latest World Bank report on migration and development. of the World Bank on migration and development.
Remittances to Morocco increased by 5.2% to $11.8 billion in 2023, representing approximately 8.2% of the country’s gross domestic product (GDP). The Kingdom is the second largest recipient of remittances in the MENA region after Egypt.
Egypt thus leads the region, with remittances of $24.2 billion received in 2023, compared to $28.3 billion in 2022 and $31.4 billion in 2021.
According to the report, in 2023, remittance flows to the region fell by 15% to $55 billion, mainly due to a sharp drop in remittances to Egypt.
This decline is mainly due to the sharp decrease in transfers through official channels, due to the significant gap between exchange rates on the official and parallel exchange markets, with the dollar sometimes exceeding 70 Egyptian pounds, according to the same source.
Globally, the top five remittance-receiving countries in 2023 were India with $120 billion, Mexico with $66 billion, China with $50 billion, the Philippines with $39 billion, and Pakistan ($27 billion).
The outlook for remittances to the Middle East and North Africa will be affected by the difficult situation facing the region’s oil-importing countries, such as Egypt, Jordan, Lebanon, Morocco and Tunisia. On the other hand, the region’s oil exporters, such as Iraq and Algeria, will benefit from higher hydrocarbon prices. For Egypt, the recent devaluation and rate hikes, the completion of International Monetary Fund (IMF) reviews and investments from the United Arab Emirates have boosted confidence in the possibility of an increase in remittances through formal channels, it said.
Overall, the World Bank projects a 4.3% increase in migrant remittances to the Middle East and North Africa (MENA) region to reach $58 billion in 2024 from $55 billion in 2023.
