Sun 18 Jun 2023 | 08:45 PM
The World Bank said that remittance flows to the Middle East and North Africa region declined by 3.8% to $64 billion in 2022, after recording a strong growth rate of 12.2% in 2021.
In the latest issue of its recently released Migration and Development Brief, the Bank indicated that the economies of the region that experienced slight increases in remittance flows included some countries of the Maghreb.
He stated that in 2023, remittance flows to the region are expected to increase by 1.7%, and future prospects vary among subgroups of countries in the region depending on the identity of the dominant host countries and the degree of exposure to high inflation and financial market volatility, according to the bank.
The average cost of sending $200 to the region was 6.2% in the fourth quarter of 2022, down from 6.4% a year earlier.
The World Bank pointed out that estimates indicate that officially registered remittance flows to low- and middle-income countries will increase by 1.4% to $656 billion in 2023, as economic activity is expected to decline in remittance-sending countries, which limits job opportunities and increases employment. Expatriate wages.
This issue of the Migration and Development Brief included an upward adjustment for the growth rate of remittance flows in 2022 to 8%, to reach $647 billion. In the post-COVID-19 period, which is witnessing a decline in economic growth and a decrease in foreign direct investment, the importance of remittance flows to countries and households has increased given their flexibility as a source of external financing, especially for low- and middle-income countries with high external indebtedness.
Michal Rutkowski, Global Director of the Social Protection and Jobs Global Practice at the World Bank, said: “Remittances substantially complement government cash transfers, as they are essential to households in times of need. The World Bank is leading the work on both the analytical and operational fronts with regard to global migration to facilitate remittance flows and reduce their costs.”
In 2022, remittances have been boosted by the rise in oil prices in GCC countries, which has helped increase expatriate incomes; also because of large financial transfers from the Russian Federation to the countries of Central Asia; and the strength of US labor markets and advanced economies of destination countries.
By region, remittance flows increased by 0.7% in East Asia and the Pacific, by 19% in Europe and Central Asia, by 11.3% in Latin America and the Caribbean, by 12.2% in South Asia, and by 6.1% in Sub-Saharan Africa. Remittance flows decreased by 3.8% to the Middle East and North Africa region (MENA).
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