The World Bank anticipates a 2.3% increase in 2024.
Transfer : According to the World Bank, Morocco is the second largest recipient of remittances in the MENA region.
The flow of remittances to Morocco has largely exceeded the flow of FDI in 2023. This is what the World Bank notes in a recent information note on migration and development. It appears that remittances have been a great contribution to the Moroccan economy. They captured 8.2% of the country’s GDP. In detail, remittances to Morocco reached 11.8 billion dollars in 2023, marking an increase of 5.2% compared to a year earlier. Given this flow, the Kingdom becomes the second largest recipient of remittances in the region after Egypt.
“The pace of remittances from Moroccans abroad remained strong throughout 2023, particularly after the earthquake in September. This is consistent with the findings of studies that demonstrate the countercyclical nature of remittance flows, which tend to increase after natural disasters in migrants’ countries of origin,” the World Bank said. Regionally, money transfers to the Middle East and North Africa fell by 15% by the end of 2023, to around $55 billion. This decline is explained by the decline in flows to Egypt.
“The disparity between official and parallel exchange rates has probably directed remittances towards informal channels. We are also seeing a rebound in official flows to Egypt after the unification of exchange rates in March 2024,” it is noted in this sense. It also appears that migratory remittances between countries in the region have been affected by the slowdown in growth in the Gulf Cooperation Council (GCC) countries. Referring to the World Bank’s projections, flows to the MENA region are expected to increase by 4.3% in 2024, specifying that the cost of sending $200 in the region stood at 6.2% on average, compared to 6.7% a year earlier.
From a broader perspective, remittances to low- and middle-income countries are expected to grow at a faster pace. The World Bank anticipates a 2.3% increase in this regard in 2024. However, this growth could be uneven across regions. “Potential downside risks to the projections would arise from weaker-than-expected economic growth in high-income countries that host migrants and from volatility in oil prices and exchange rates,” explains the World Bank. It should be recalled that in 2023, remittances to low- and middle-income countries would have amounted to €656 billion, whereas they had increased significantly over the period 2021-2022.
According to the World Bank, this modest increase of 0.7% reflects the large disparities in regional growth, but remittances remain a key source of external financing for developing countries in 2023, as they support the current account of several countries struggling with food insecurity and debt problems. It is worth noting that remittances exceeded the amount of foreign direct investment and official development assistance.
