Rabat – The flow of remittances from Moroccans abroad reached MAD 9.2 billion ($910 million) in the first month of 2024, according to new data from the country’s foreign trade watchdog, Office d’Exchange (OE).
In a monthly update, OE data show the flow of remittances dipped by 2.6% compared to the year before, while remaining higher than the average over the past five years.
Remittances from Moroccans abroad peaked at MAD 9.4 billion ($930 billion) in January 2023, the highest level in the past five years, and marking a significant rise from the MAD 6.2 billion ($610 million) recorded a year earlier, OE data shows.
The rise in the flow of remittances in Morocco in 2023 was likely linked to the devastating earthquake that struck the country on September 8. At the end of 2023, remittances totaled MAD 115.15 billion ($11.5 billion).
The figure was close to the $12 billion the World Bank (WB) expected in the wake of the natural catastrophe that had claimed nearly 3,000 lives and left thousands without shelter.
Published in December 2023, the WB report explained 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.
However, the WB report argues that the outlook for remittances in Morocco and the MENA region at large remains clouded with uncertainty in 2024. 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.
Remittance flows in 2024 to the MENA region are expected to grow moderately by 2.1% in 2024.
The outlook depends on a number of 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.
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