The World Bank estimated remittance inflows to Arab countries at $59bn in 2018, constituting an increase of 9.2% from $54bn in 2017, compared to an increase of 6.8% in 2017 and a contraction of 0.5% in 2016. It attributed the growth in remittances to the Arab region mainly to a surge in remittance inflows to Egypt, Palestine and Sudan. It anticipated that improved economic growth in Europe would support remittance inflows to Morocco and Tunisia in 2018. Further, it said that inflows to Arab countries would account for 4.3% of global remittance flows and for 11.4% of remittances to developing economies in 2018. The Arab region ranked as the second smallest recipient in developing markets, ahead of only Sub-Saharan Africa (8.7%). Also, the figures show that the increase in remittance inflows to Arab countries in 2018 is the second lowest among developing economies, ahead of only East Asia & Pacific (+6.6%). In parallel, the Bank expected Egypt to be the largest Arab recipient of remittances this year with $25.7bn or 43.5% of the total, followed by Lebanon with $7.8bn (13.2%), Morocco with $7.4bn (12.5%), Jordan with $4.4bn (7.4%), Yemen with $3.35bn (5.7%), Palestine with $2.7bn (4.6%), Algeria with $2.2bn (3.7%) and Tunisia with $2bn (3.4%), while the remaining eight Arab countries will receive $3.5bn in remittances, or 5.9% of the total. Remittance inflows to Palestine are estimated to be equivalent to 18% of GDP in 2018, the highest in the region, followed by Lebanon at 13.7% of GDP, Yemen at 11.7% of GDP, Jordan at 10.5% of GDP and Egypt at 10.3% of GDP. Excluding Syria, remittance inflows to Arab countries would be equivalent to about 2.1% of the region's GDP this year relative to 2.2% of GDP in 2017.
Source: World Bank, Byblos Research