World Bank reveals decline in remittances to developing countries in 2023
Date
6/27/2024 4:15:22 AM
(MENAFN) In its latest "Migration and Development Brief" report released on Wednesday, the World bank noted a decline in official remittances to low- and middle-income countries in 2023. After experiencing robust growth during the 2021-2022 period, these remittances dropped to an estimated USD656 billion in 2023. The report highlighted a modest growth rate of 0.7 percent in remittances, reflecting significant regional variations. Despite this slowdown, remittances continue to serve as a crucial source of external financing for developing countries, bolstering their current accounts, particularly in nations grappling with food insecurity and heavy debt burdens.
The report further revealed that in 2023, remittances surpassed both foreign direct investment and official development aid. Looking ahead, remittances to low- and middle-income countries are projected to grow at a faster pace of 2.3 percent in 2024, though this growth is expected to vary significantly by region. The World Bank identified several potential risks to this outlook, including slower-than-anticipated economic growth in high-income countries that host large migrant populations, as well as fluctuations in oil prices and currency exchange rates.
Effat Sharif, the Global Director of the Social Protection and Jobs Global Practice at the World Bank, emphasized the importance of migration and remittances as key drivers of economic and human development. She noted that many countries are keen on regulating migration activities to address global demographic imbalances and labor shortages, recognizing the critical role that remittances play in supporting the economies of developing nations.
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