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Marrakech – According to the latest Migration and Development Brief from the World Bank, Morocco has achieved significant gains in migrant remittances, reaching another record-high level in 2023. This confirms the impact of the September 2023 earthquake on financial transfers to the country.
The report states that remittances to Morocco increased by 5.2% to $11.8 billion in 2023, making the country the second largest recipient of remittances in the Middle East and North Africa (MENA) region after Egypt.
Remittance inflows to Morocco have consistently exceeded foreign direct investment (FDI) flows and constitute a vital part of the Moroccan economy, accounting for 8.2% of the country’s GDP.
The pace of remittances from Moroccans abroad remained strong throughout 2023, especially after the earthquake.
This aligns with studies showing the counter-cyclical nature of remittance flows, which tend to increase in the aftermath of natural disasters in migrants’ home countries.
Looking ahead, the World Bank report notes that the outlook for remittances to the MENA region will be affected by the difficult situation facing oil-importing countries, like Morocco.
Nonetheless, flows to the region are expected to recover by 4.3% in 2024. The average cost of sending $200 to the region was 5.9%, down from 6.7% a year ago.
Morocco has made substantial progress in recent years to enhance remittance channels, financial inclusion, and access to digital transfers.
These efforts are in line with the implementation of the country’s New Development Model, which aims to reinforce the role of remittances in driving economic and social development.
Despite these advancements, challenges remain in terms of reducing remittance costs further to reach the UN Sustainable Development Goal target of 3%, increasing awareness and adoption of digital remittance methods, and expanding access points, especially in rural areas.
Read also: Morocco Ranks Second Among Top Remittance Recipients in MENA Region
