Rabat – The flow of remittances in Morocco in 2023 is anticipated to surge by 8.6% to $12.1 billion, according to a report from the World Bank (WB).
Published last week, the report shows that remittances in Morocco sustained an upward trajectory for seven years, providing a crucial financial lifeline for Moroccan families, particularly during the COVID-19 pandemic.
In 2023, remittance inflows from Moroccans abroad remained notably strong, gaining momentum following the devastating September 8 earthquake.
Data from Morocco’s Exchange Office cited in the report reveals a substantial 6.1% uptick in remittance flows, soaring to MAD 96.4 billion ($9.5 billion) in the first ten months of 2023 compared to the previous year.
WB research pointed out that the increase in remittances, coupled with international aid, is poised to aid in offsetting the aftermath of natural disasters.
They will play a pivotal role in mitigating reconstruction costs and fortifying Morocco’s external financial stability. This reinforces the significance of remittances from Morocco’s diasporas as a crucial support mechanism during times of adversity.
The report notes that the Middle East and North Africa (MENA) region is witnessing an overall decline in remittances, but Morocco emerges as an exception.
The country’s remittance forecast for 2023 indicates a potential record high, propelled notably by the impact of the seismic event in September.
In 2024, the outlook for remittances in the MENA region remains clouded with uncertainty. The oil-exporting nations like Iraq and Algeria stand to benefit from increased hydrocarbon prices while oil-importing countries grapple with mounting challenges.
The region’s overseas labor force faces conflicting pressures, balancing the desire to support families during tough times against anticipated declines in real wages.
Overall, remittance flows in 2024 to MENA are poised to see a moderate 2.1% gain.
The outlook hinges on various factors such as dominant host countries, exposure to energy and food price fluctuations, and the fiscal and external financial predicaments of different subgroups within the region.
Morocco, in particular, faces the ongoing task of recovery post-earthquake while navigating the broader economic landscape alongside its MENA counterparts.
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