Remittances from Spain to Morocco have almost doubled, reaching €1.375 billion in 2023, making Morocco the second-largest recipient. The growth correlates with a burgeoning Moroccan community in Spain, now over one million strong. Remittances account for 13.1% of total transfers, with significant increases noted worldwide. Morocco’s remittance flows reflect broader trends in migration and economic development.
Recent data from the Bank of Spain indicates that remittances from Spain to Morocco have nearly doubled over the past decade, making Morocco the second-largest recipient of these funds. In 2023, remittances to Morocco reached €1.375 billion, equating to 13.1% of Spain’s total remittances and contributing 0.09% to its GDP. This represents a significant increase from a decade ago, where Morocco received only 7.4% of total remittances and 0.04% of Spain’s GDP.
The increase in remittances aligns with the rapid growth of the Moroccan community in Spain, which has seen an addition of 200,000 individuals in just two years. Currently, Moroccans represent the largest foreign demographic in Spain, exceeding one million residents, as reported by the Spanish National Statistics Institute (INE). Meanwhile, Colombia remains the largest recipient of remittances from Spain, obtaining 14.7% of total transfers, amounting to €1.5 billion.
Overall, Spain’s remittance outflow reached €10.7 billion in 2023, accounting for 0.7% of its GDP, reflecting a growth of 0.5 percentage points since the COVID-19 pandemic. This influx of remittances significantly boosts Morocco’s position in diaspora transfers. The Moroccan diaspora worldwide is projected to have remitted MAD 117.7 billion ($11.7 billion) in 2024, marking a 2.1% increase from the previous year.
Morocco ranks as the second-largest recipient of remittances in the MENA region, following Egypt. Additionally, foreign direct investments in Morocco have risen impressively, reaching MAD 17.23 billion ($1.7 billion), a 55.4% increase from the previous year. This trend is expected to continue into 2025, with January alone seeing remittances from Moroccans abroad rising to MAD 9.45 billion ($950 million), up from MAD 9.4 billion during the same period last year.
The remittance landscape has transformed significantly since 2013 when Ecuadorians, Bolivians, and Romanians in Spain sent more money than Moroccans. Even prior to the pandemic in 2019, Ecuadorians were leading in remittances. Other notable increases include Honduras, which has grown its share of remittances to 4.9%, totaling €520 million, and Pakistan, which increased its share from 2% to 4.4%. The Bank of Spain observes that while remittance inflows have surged, Spain’s remittance-to-GDP ratio remains lower than the global average, despite showing significant growth.
This expansion in remittance flows has fostered the emergence of new financial service providers, with digital platforms facilitating these transactions and indicating a shifting financial landscape for international transfers from Spain.
In conclusion, Morocco has emerged as a major recipient of remittances from Spain, reflecting a robust growth trend over the last decade. The significant increase in the Moroccan community in Spain has correlated with this rise in remittances, which now constitute a notable percentage of Spain’s GDP. As emerging financial services adapt to these trends, the landscape of international money transfers continues to evolve, further enhancing Morocco’s economic position in the MENA region.
Original Source: www.moroccoworldnews.com
