According to the latest edition of the World Bank Briefing Note on Migration and Development, migration remittances to low- and middle-income countries stalled in 2023. They would have amounted to 656 billion euros, while they had advanced greatly over the 2021-2022.
“Forecasts reveal that migration remittances to low- and middle-income countries are anticipated to increase at a faster rate of 2.3% in 2024, although this growth will be uneven across regions,” reads a press release from the World Bank published Wednesday.
It added that money transfers to the Middle East and North Africa declined by 15% to reach $55 billion, mainly due to the decline in flows to Egypt. The disparity between official and parallel exchange rates likely steered remittances toward informal channels.
We also observe a rebound in official flows to Egypt after the unification of exchange rates in March 2024. Migration remittances between countries in the region have been impacted by the slowdown in growth in the GCC countries.
Projections show that flows to the region are predicted to increase by 4.3% in 2024. Finally, the cost of sending $200 to the region averaged 6.2%, up from 6.7%. one year earlier.
In 2023, remittances from Tunisian migrants (transfers from Tunisians abroad) attained an amount of 2.7 billion dinars, or roughly 5.2% of Gross Domestic Product (GDP). Tunisia is ranked 7th in terms of the value of migrant remittances.
Migration remittances to sub-Saharan Africa reached $54 billion, a slight decrease of 0.3%. They supported the current account of several African countries confronting food insecurity, drought, supply chain disruptions, flooding and debt servicing difficulties.
The Gambia, Lesotho, Comoros, Liberia and Cabo Verde are among the countries most dependent on migrant remittances.
Overall, flows to the region are expected to increase by 1.5% in 2024. Finally, sending $200 to the region cost an average of 7.9% in 2023, a rate virtually unchanged from the previous year.
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