The World Bank (WB) foresees Egypt to become the top recipient of remittances at a value of USD 24.4 bn (EGP 382.2 bn) across the MENA region in 2020, Invest-Gate reports.
This amount is set to account for 6.7% of the gross domestic product (GDP), making the Arab republic the region’s fifth top remittance recipient in terms of GDP share, according to the Migration and Development October report.
Remittances inflows to Egypt have “so far been countercyclical” to the COVID-19 crisis, as Egyptian expats raised one-off transfers to their families back home, the WB said in an October 29 official statement.
The cost of sending USD 200 mn (EGP 3.13 bn) to the MENA region, meanwhile, grew YoY to 7.5% in Q3 2020, up from 6.8% in the year-ago period, the statement noted.
In line with the Coronavirus spread, Egypt might see a growing return migration, with estimates forecasting up to 1 mn returning, said the October report, noting that the North African nation is deemed “a major transit country and has a high rate of COVID-19 infection.”
According to the WB, remittances to the MENA region are projected to slip 8% to USD 55 bn (EGP 861.40 bn) in 2020, due to an expected persistence of the global slowdown.