Surge in Spanish remittances positions Morocco as a leading recipient

Remittances from Spain to Morocco have nearly doubled over the past decade, establishing Morocco as the second-largest recipient of funds transferred from the European nation. Recent data from the Bank of Spain, analyzed by The Objective, reveals that in 2023, remittances to Morocco reached €1.375 billion, accounting for 13.1% of total remittances from Spain and representing 0.09% of Spanish GDP.

This significant increase marks a rise from just 7.4% of total remittances a decade ago, when the contributions to Morocco comprised only 0.04% of Spain’s GDP. The surge in transfers is closely linked to the expanding Moroccan community in Spain, which has grown by 200,000 individuals in the last two years alone. According to the Spanish National Statistics Institute (INE), Moroccans now represent the largest foreign population in Spain, surpassing one million residents.

Colombia continues to hold the top position as the primary destination for remittances from Spain, receiving 14.7% of total transfers, which amounts to €1.5 billion. Overall, Spain's remittance outflow reached €10.7 billion in 2023, reflecting 0.7% of Spanish GDP—an increase of 0.5 percentage points since the onset of the COVID-19 pandemic.

Morocco’s prominence in diaspora transfers is further underscored by the Moroccan Exchange Office, which reported that total remittances from the Moroccan diaspora worldwide hit MAD 117.7 billion ($11.7 billion) in 2024, a 2.1% rise from the previous year. The country remains the second-largest recipient of remittances in the MENA region, trailing only Egypt. Furthermore, foreign direct investments in Morocco improved significantly, reaching MAD 17.23 billion ($1.7 billion), marking a 55.4% increase from the prior year.

The trend of increasing remittances is expected to continue into 2025, with the Exchange Office reporting that remittances from Moroccans abroad totaled MAD 9.45 billion ($950 million) in January alone, slightly surpassing the MAD 9.4 billion recorded during the same month last year.

The dynamics of remittance flows have changed considerably since 2013, when Ecuadorian, Bolivian, and Romanian residents in Spain sent more money than Moroccans. Even in 2019, prior to the pandemic, the Ecuadorian community was still sending larger amounts. Other notable increases in remittances from Spain include Honduras, which has seen its share double to 4.9% of total transfers at €520 million, and Pakistan, which has grown from 2% to 4.4%.

While remittance flows have soared globally and within Spain, reflecting current migration patterns, the Bank of Spain notes that Spain’s remittance-to-GDP ratio remains below the international average, albeit demonstrating “notable dynamism.” The growth in remittance flows has also spurred the entry of new financial service providers, with digital platforms emerging to facilitate these transfers, indicating a transforming financial landscape for international money transfers from Spain.