Remittance inflows to Egypt continue increasing despite global decline, World Bank says

The World Bank expected that the remittances of the Egyptians, working abroad, would hit 24.4 billion dollars by the end of 2020, or 6.7 percent of GDP, despite the ramifications of the global outbreak of coronavirus.

“Remittances inflows to Egypt, the region’s largest recipient, have so far been countercyclical to the crisis, as Egyptian workers abroad increase one-off transfers to their families back home,” the World Bank said in a recent report.

“Remittances to the Middle East and North Africa region are projected to fall by eight percent in 2020 to $55 billion due to the projected persistence of the global slowdown.”

The World Bank expected flows are likely to eventually decline due to lower oil prices and slower economic growth in the Gulf countries, with major remittance-receiving countries likely to register falls in remittances.

Remittance costs: The $200 cost of sending a remittance to the region rose in the third quarter of 2020 to 7.5 percent, compared with 6.8 percent a year ago.

Remittance flows to low and middle-income countries (LMICs) are projected to fall by seven percent, to $508 billion in 2020, followed by a further decline of 7.5 percent, to $470 billion in 2021.