Remittances Slowed in 2023, Expected to Grow Faster in 2024

Migration and Development briefs are produced every six months and provide an update on key developments in the area of migration and remittance flows and related policies. The World Bank Migration and Development briefs contain the latest on remittance flow market trends broken down by region and remittance pricing data.

After a period of strong growth during 2021-2022, officially recorded remittance flows to low- and middle-income countries (LMICs) moderated in 2023, reaching an estimated $656 billion, according to the World Bank’s latest Migration and Development Brief, released today.

The modest 0.7% growth rate reflects large variances in regional growth, but remittances remained a crucial source of external finance for developing countries in 2023, bolstering the current accounts of several countries grappling with food insecurity and debt issues. In 2023, remittances surpassed foreign direct investment (FDI) and official development assistance (ODA).

Looking ahead, remittances to LMICs are expected to grow at a faster rate of 2.3% in 2024, although this growth will be uneven across regions. Potential downside risks to these projections include weaker than expected economic growth in high-income migrant-hosting countries and volatility in oil prices and currency exchange rates.

https://www.knomad.org/publication/migration-and-development-brief-40