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2023 Sees Continued Growth in Diaspora Remittance Flows to LMICs

Global – Remittance flows to low- and middle-income countries (LMICs) have witnessed a growth of about 3.8% in 2023, according to the latest Migration and Development Briefing Note. This increase, though moderate compared to the robust gains in the previous years, reflects the ongoing resilience of global labor markets.

According to Africa News Agency, the briefing note estimates that remittances to LMICs reached $669 billion in 2023, driven by strong labor markets in advanced economies and Gulf Cooperation Council (GCC) countries. These factors have supported migrants’ capacity to send money home, despite concerns about the potential decline in real migrant income in 2024 due to global inflation and weak growth prospects. By region, remittance flows increased in Latin America and the Caribbean (8%), South Asia (7.2%), East Asia and the Pacific (3%), and Sub-Saharan Africa (1.9%). However, remittances to the Middle East and North Africa witnessed a decline of 5.3%, mainly due to a significant decrease in flows to Egypt. Europe and Central Asia also experienced a 1.4% decline in remittances after a substantial increase of more than 18% in 2022.

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