Morocco’s Economy Boosted by $11.8 Billion in Overseas Remittances

These financial flows, which constantly exceed foreign direct investment (FDI), constitute a fundamental pillar of the Moroccan economy, representing 8.2% of the country’s GDP. Their importance was particularly significant in 2023, especially after the earthquake in Al Haouz, where remittances played a crucial role in supporting the affected populations, recalls the newspaper l’Économiste.

World Bank data confirms the countercyclical nature of remittances, which generally increase during times of crisis in migrants’ countries of origin. This trend was verified in 2023, despite a global economic context marked by a slowdown in growth in the countries of the Gulf Cooperation Council (GCC).

Despite this unfavorable environment, remittances to the MENA region are expected to show a moderate increase of 4.3% in 2024, followed by a new increase of 5.5% in 2025. This resilience is partly explained by the unification of exchange rates in Egypt in March 2024, which led to a rebound in official flows to this country.

While remittances constitute an essential source of financing for developing countries, their cost remains too high. In 2023, the average cost of sending $200 to the MENA region was 6.2%, compared to 6.7% the previous year. Efforts must therefore be made to reduce these fees and make fund transfers more accessible to migrants. The issue has been repeatedly addressed by the Moroccan authorities, but nothing concrete has been decided so far.

In 2023, remittances to low- and middle-income countries reached $656 billion, exceeding foreign direct investment and official development assistance. These financial flows have played a vital role in supporting the current accounts of many countries facing food insecurity and debt problems.