Spanish Remittances to Morocco: A Decade of Significant Growth

Remittances from Spain to Morocco have nearly doubled in the last decade, reaching €1.375 billion in 2023, making Morocco the second-largest recipient after Colombia. This surge is linked to the growing Moroccan community in Spain and reflects the changing dynamics of global remittance flows.

Recent data from the Bank of Spain, as analyzed by The Objective, indicates that remittances from Spain to Morocco have nearly doubled over the past decade. In 2023, these remittances reached €1.375 billion, constituting 13.1% of Spain’s total remittances and 0.09% of its GDP. This represents a significant increase from a decade ago, when Morocco accounted for only 7.4% of total remittances, reflecting a notable growth in financial transfers.

The growth in remittances aligns with the expanding Moroccan community in Spain, which has surged by 200,000 individuals within the last two years. Currently, Moroccans represent the largest foreign group in Spain, surpassing one million residents according to the Spanish National Statistics Institute (INE). Colombia remains the top recipient of remittances from Spain, receiving 14.7% or €1.5 billion of the total.

In 2023, the overall remittance outflow from Spain amounted to €10.7 billion, equating to 0.7% of Spain’s GDP, marking a 0.5 percentage point rise since the COVID-19 pandemic. This trend emphasizes Morocco’s significant position in international money transfers. Morocco’s Exchange Office reported that worldwide remittances from the Moroccan diaspora reached MAD 117.7 billion ($11.7 billion) in 2024, reflecting a 2.1% increase from the previous year and solidifying its status as the second-largest recipient in the MENA region after Egypt.

Additionally, Morocco’s foreign direct investments improved dramatically, reaching MAD 17.23 billion ($1.7 billion), which is a 55.4% increase from 2023. The upward trend in remittances continued into January 2025, with transfers from Moroccans abroad reaching MAD 9.45 billion ($950 million), slightly exceeding MAD 9.4 billion from the same period the previous year.

The remittance landscape has evolved significantly since 2013, a time when other nationalities, such as Ecuadorians, Bolivians, and Romanians, were sending higher amounts than Moroccans. Noteworthy increases in remittances from Spain include Honduras, with a rise to 4.9% of total transfers, and Pakistan, increasing from 2% to 4.4%. The Bank of Spain highlights a general trend of soaring remittances, although Spain’s remittance-to-GDP ratio remains below the international average despite showing commendable dynamism. This growth has also led to the emergence of new financial service providers and digital platforms tailored to facilitate these money transfers, signaling an evolving financial landscape.

In conclusion, remittances from Spain to Morocco have seen significant growth, positioning Morocco as the second-largest recipient after Colombia. The growth corresponds with an increase in the Moroccan population in Spain and reflects the changing patterns of international money transfers. This trend highlights both the economic importance of diaspora contributions and the emerging financial technologies aimed at facilitating these transactions.

Original Source: www.moroccoworldnews.com