Egypt has been revealed as the seventh-largest recipient of remittances worldwide, according to a report by the World Bank. The report highlights the total amount of remittances received by countries, reaching a staggering $831 billion, with low- and middle-income countries recording an 8% growth to reach $647 billion.
The World Bank, in a report titled “Remittances Still Resilient but Slowing Down,” projects a 1.4% increase in remittances to low- and middle-income countries, totaling $656 billion in 2023. The report expects a decline in economic activity in countries that are major senders of remittances, which in turn affects job opportunities, employment rates, and the wages of migrants.
Commenting on the matter, Michal Rutkowski, Global Director of the World Bank’s Social Protection and Jobs Global Practice, stated, “Remittances complement government transfers significantly, serving as a lifeline for families in times of need. The World Bank leads efforts in analytical studies and operations related to international migration to facilitate remittance flows and reduce costs.”
Remittance flows to the Middle East and North Africa region experienced a 3.8% decline to $64 billion in 2022 after witnessing a strong growth rate of 12.2% in 2021. The region’s economies that saw modest increases in remittance flows included some countries in the Arab Maghreb.
In 2023, remittance flows to the region are expected to increase by 1.7%. The future prospects vary among subgroups of countries in the region, depending on the dominant host country identity and exposure to inflation and financial market fluctuations. The average cost of sending $200 to the region decreased to 6.2% in the last quarter of 2022, down from 6.4% the previous year.
The report also highlights a decrease in remittances to Egypt, the largest recipient in the region, by 10% in 2022, amounting to $28.3 billion compared to $31.5 billion in 2021, marking the highest level of outward remittances from Egyptians abroad.