The World Bank published its 2022 report on remittances to low- and middle-income countries on November 30.
Thus, the World Bank observes that remittances withstood the global turbulence in 2022 and their total amount is estimated at 626 billion dollars, an increase of 5% compared to last year. However, this is a sharp decline from the 10.2% increase recorded in 2021.
“For low- and middle-income countries, remittances from migrants are a vital source of income,” says the Bretton Woods institution, adding that “these remittances to countries of origin help reduce poverty and improve nutritional status, and are correlated with better low birth weight outcomes and school enrollment among children from poor households. »
The World Bank report states that “research shows that migration remittances help recipient households build their resilience, for example by enabling them to improve their housing conditions and cope with losses incurred as a result of a natural disaster. »
Remittances from Algerian migrants on the rise
As for Algeria, according to World Bank estimates, remittances from Algerians living abroad should register an increase this year compared to the previous year.
Indeed, according to the international financial institution, by the end of 2022, Algerians abroad should transfer to their country of origin, 1.829 billion dollars, against 1.759 billion dollars sent in 2021, an increase of 70 million dollars and a growth of 3.83%.
As for the Middle East and North Africa, the region should receive 63 billion dollars in migration remittances in 2022, an increase of 2.5% against 10.5% in 2021, according to the World Bank report, which explains that “this slowdown is partly linked to the erosion of real wages in the euro area, even if the demand for remittances in the countries of origin has increased in a context of deteriorating living conditions, in particular the drought in the Maghreb and the high prices of imported wheat. »
Egyptian remittances expected to reach $32.337 billion
As a percentage of GDP, remittances are significant in Lebanon (38%) and the West Bank and Gaza (19%). Overall, flows to the region are expected to increase by 2% in 2023. Sending costs for $200 amounted to 6.3% on average in the second quarter of 2022.
The MENA region received $62 billion in 2021, $56 billion in 2020, and $54 billion in 2019.
Egyptians are first in remittances to their country of origin in the region. Indeed, Egypt remains the country in the region that should receive 32.337 billion dollars this year, against 31.487 billion dollars in 2021.
Remittances to Sub-Saharan Africa up 5.2%
The World Bank estimates that “migratory remittances to sub-Saharan Africa, the region most exposed to the effects of the global crisis, increased by 5.2% to reach $53 billion in 2022, compared to 16.4% the last year (mainly due to large flows to Nigeria and Kenya). »
“In 2023, flows are expected to slow further, to 3.9%, due to the persistence of an unfavorable economic situation in the world and in the source countries of the region”, predicts the same source, which adds: “The share remittances in GDP is significant in The Gambia (28%), Lesotho (21%) and Comoros (20%). »
It cost 7.8% on average to send $200 to the region in the second quarter of 2022, compared to 8.7% a year earlier. Money transfers vary on average from 3.4% to 25.2%, it is specified.
