Spanish remittances to Morocco have nearly doubled, reaching €1.375 billion in 2023, making Morocco the second-largest recipient. The growth coincides with an increase in the Moroccan population in Spain, which now exceeds one million. Remittance outflows from Spain totaled €10.7 billion, with the overall financial landscape adapting to these changes through new service providers.
Recent data from the Bank of Spain, analyzed by The Objective, reveals that remittances from Spain to Morocco have nearly doubled in the last decade, making Morocco the second-largest recipient of such funds. In 2023, these transfers amounted to €1.375 billion, which constitutes 13.1% of total remittances from Spain and 0.09% of Spain’s GDP, a significant increase from 7.4% and 0.04% a decade ago.
The rise in remittances corresponds with an expanding Moroccan community in Spain, which has grown by 200,000 individuals in two years. Currently, Moroccans represent the largest foreign demographic in Spain, surpassing one million residents according to the Spanish National Statistics Institute (INE). Colombia remains the top destination for remittances, receiving 14.7% of transfers from Spain, equivalent to €1.5 billion.
Total remittance outflows from Spain reached €10.7 billion in 2023, making up 0.7% of the country’s GDP, reflecting a 0.5 percentage point increase since the COVID-19 pandemic. Morocco’s dominance in diaspora transfers has been reinforced by these figures, with the Moroccan diaspora’s worldwide remittances totaling MAD 117.7 billion ($11.7 billion) in 2024, indicating a 2.1% rise from the previous year.
In addition to remittances, Morocco has seen a substantial increase in foreign direct investments, now amounting to MAD 17.23 billion ($1.7 billion), which is a 55.4% increase from the previous year. The trend appears to continue into 2025, with remittances from abroad reported at MAD 9.45 billion ($950 million) in January, a slight increase over the MAD 9.4 billion from the previous year.
The profile of remittance flows has changed significantly since 2013, when Ecuadorians, Bolivians, and Romanians transferred more than Moroccans. As of pre-pandemic 2019, Ecuadorian residents were still leading in remittance amounts. Noteworthy increases are also seen in Honduras and Pakistan, which have seen their shares rise to 4.9% and 4.4% of total transfers, respectively.
Although Spain’s remittances have surged in both domestic and global contexts, the Bank of Spain highlights that the remittance-to-GDP ratio remains below the international average. This notable growth has encouraged new financial service providers to enter the market, signaling a changing financial landscape for international money transfers from Spain.
In conclusion, remittances from Spain to Morocco have surged significantly, reinforcing Morocco’s position as the second-largest recipient of these funds. The expanding Moroccan community in Spain has contributed to this trend, alongside increased foreign direct investment and evolving financial services for international transfers. The shifting dynamics of remittance flows indicate a broader transformation in migration patterns and economic connections between Spain and Morocco.
Original Source: www.moroccoworldnews.com
