Economic Research | Lebanon This Week | Lebanon This Week 637 | Remittance inflows to Lebanon up 6% to $7.4bn in 2019 | Lebanon | Byblos Bank

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Byblos Bank

Lebanon This Week 637

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Remittance inflows to Lebanon up 6% to $7.4bn in 2019

Figures released by Banque du Liban show that the inflows of expatriates' remittances to Lebanon totaled $7.4bn in 2019, constituting an increase of 6.2% from $7bn in 2018, relative to a decline of 1.2% in 2018. Remittance inflows to Lebanon increased by 6.6% year-on-year to $1.91bn in the first quarter of 2019, while they rose by 11.5% annually to $1.97bn in the second quarter, grew by 12.8% year-on-year to $1.93bn in the third quarter, and dropped by 6.3% annually to $1.6bn in the fourth quarter of 2019, their lowest level since the fourth quarter of 2012. The figures include workers' remittances and the compensation of employees, according to the World Bank's definition of remittances. Banque du Liban's figures are the only official data on remittance flows to and from Lebanon. 

In addition, remittance inflows to Lebanon in 2019 reached their fifth highest annual level between 2002 and 2019, with a high of $7.6bn in 2016 and a low of $2.54bn in 2002. They averaged $6.4bn annually between 2002 and 2019, but they increased from an annual average of $4.8bn during the 2002-07 period to a yearly average of $7.2bn between 2008 and 2019. Further, remittance inflows were equivalent to 14.2% of GDP in 2019 compared to 12.7% of GDP in 2018. 

In parallel, remittance outflows from Lebanon amounted to $4.3bn in 2019, down by 13.5% from $5bn in 2018, and relative to an increase of 12.4% in 2018. Remittance outflows from Lebanon declined by 1.6% annually to $1.2bn in the first quarter of 2019, while they decreased by 4.7% year-on-year to $1.17bn in the second quarter, regressed by 14.5% to $1.1bn in the third quarter, and dropped by 32.3% to $861m in the fourth quarter of 2019, their lowest level since the third quarter of 2007. 

In addition, remittance outflows in 2019 reached their ninth highest annual level during the 2002-19 period, with a high of $5.75bn in 2009 and a low of $2.5bn in 2002. They averaged $4.2bn annually between 2002 and 2019, but they increased from an annual average of $3.5bn during the 2002-07 period to a yearly average of $4.5bn between 2008 and 2019. Further, remittance outflows from Lebanon were equivalent to 8.3% of GDP in 2019 compared to 9.1% of GDP in 2018. 

As such, net remittance inflows to Lebanon totaled $3.1bn in 2019, constituting a jump of 56.1% from $2bn in 2018, and relative to a decrease of 24.5% in 2018. Net remittance inflows to Lebanon in 2019 reached their third highest annual level during the 2002-19 period, compared to $3.8bn in 2015 and $3.4bn in 2016. They averaged $2.2bn annually between 2002 and 2019, but they increased from an annual average of $1.25bn during the 2002-07 period to a yearly average of $2.67bn between 2008 and 2019. Net remittance inflows to Lebanon were equivalent to 5.9% of GDP in 2019, compared to 3.6% of GDP in 2018. 
 
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