The World Bank expects a rise in remittance flows from migrant workers to low- and middle-income countries

In its latest report on Migration and Development, the World Bank stated that remittances to developing countries in the Middle East and North Africa may grow by an estimated 9.7% in 2021 to reach $62 billion, and that remittances to low- and middle-income countries have risen by 7.3% to reach $589 billion in 2021.

 

The bank considered that this return to achieving growth is more robust than previous estimates and comes after a slight decrease in remittances, which did not exceed 1.7% in 2020, despite the severe global recession caused by COVID-19.

 

Michal Rutkowski, Global Director of the Social Protection and Jobs Sector at the World Bank, explained in this context that “migrant remittance flows have significantly strengthened government cash transfer programs to support families experiencing economic hardship during the pandemic. Facilitating the flow of remittances to aid families is one of the government’s policies to support the global recovery from the pandemic.”

 

The report revealed that remittances recorded strong growth this year in most regions, with flows increasing by 9.7% in the Middle East and North Africa, and 6.2% in Sub-Saharan Africa. It was thanks to the growth in the host countries in the European Union (particularly France and Spain), and the increase in international oil prices, which had a positive impact on the Gulf Cooperation Council countries. This increase took place thanks to the strong improvement in inflows to Egypt and Morocco, and return and transit migration. Remittance flows to Maghrebean countries (Algeria, Morocco, and Tunisia) increased by 15.2%, driven by the growth in the euro area. However, flows declined in many countries in the region in 2021, including Jordan, Djibouti, and Lebanon.

 

The report indicates that the factors that contributed to the strong growth of remittances abroad include support for migrants and their families in their country of origin, financial stimulus and employment support programs in Europe and the United States, and high oil prices in the Gulf Cooperation Council countries and Russia.