The key contribution of the Moroccan community in Spain: Remittances are critical for Morocco

More than one million people of Moroccan origin live in Spain, making them the largest foreign community in the country, surpassing even Colombians. This diaspora plays a crucial role in Morocco’s economy, with many of its citizens still attempting to migrate to Europe, as evidenced by recent incidents in Ceuta. Morocco relies heavily on remittances sent by its expatriates, particularly those living in Spain, which serve as a steady flow of financial resources to their families back home. According to data from the Bank of Spain, remittances from Spain to Morocco reached nearly 1.589 billion euros in 2025, representing more than 1% of Morocco's gross domestic product. These funds are vital for sustaining household incomes and supporting economic activities within Morocco. Rut Bermejo, a researcher at the Real Instituto Elcano, describes the Moroccan community in Spain as an "economic actor of first order for Morocco," akin to a major national export due to its ability to generate consistent inflows of capital. The significance of this contribution stems both from the size of the community and their high level of employment participation. Spain ranks second among the main sources of remittances to Morocco, contributing around 15% of the total received by the country. This figure places it behind France, which sends over 3.4 billion euros, nearly 30% of Morocco’s total remittance income. France’s dominance is attributed to its vast Moroccan expatriate population, exceeding 1.5 million individuals. Italy follows closely, providing approximately 800 million euros, or less than 10% of the total. In aggregate, international remittances account for 7.5% of Morocco’s GDP, according to the World Bank’s latest figures. This translates to roughly 12 billion euros annually, equivalent to the amount the country earns through tourism. Morocco is among Africa’s top recipients of remittances, comparable to Egypt and Nigeria, despite having a significantly smaller population. Íñigo Moré, from the research center Remesas.org, emphasizes that remittances are critical for Morocco’s economic stability. Without these inflows, maintaining current levels of imports would be unsustainable. As a developing nation, Morocco imports over half of its consumption, accounting for 53% of its GDP, according to the World Bank. This is challenging to finance given the weak value of the dirham, which is worth less than 10 cents in euros. Unlike tourism-related earnings, which require investment in infrastructure and employee wages, remittances provide immediate, free cash flow. International transfers also stimulate local activity and benefit the broader economy in both the short and long term, as noted by Bermejo. These funds support parents, children, or other family members remaining in Morocco, often used to finance housing, education, and healthcare for the younger generation. They can also enable relatives to launch small businesses. For the Moroccan economy, there is encouraging news: the trend shows that Moroccan immigrants in Spain are sending increasing amounts of money back to their homeland. These remittances have grown more than threefold in the last decade. This rate of increase far exceeds the growth of transfers from Spanish households to any other country, which barely doubled during the same period, reaching 12.207 billion euros, according to the Bank of Spain. Moré attributes the surge in transfers from Spain to the fact that, since the pandemic, Moroccan immigrants have reduced travel and increasingly opted for bank-based or digital methods of sending money.