The Increasing Role and Importance of Remittances in Lebanon

The Increasing Role and Importance of Remittances in Lebanon

May 24, 2023

Remittances have always been an important economic and social agent in the life of the Lebanese, and their role evolved and gained more significance in the past few years. Despite the economic and financial crisis that has drained the country, a decade-long empirical examination (2010-2021) reveals that expatriates’ inflows have remained relatively stable, indicating the strong connection between the Lebanese diaspora and their home country.

The “increasing role and importance of remittances in Lebanon” report investigates the macro and micro determinants of remittances, as well as their socio-economic impact before and after the 2019 financial crisis. It also examines their sources (countries of origin- and their potential use by the recipient families. The report distinguishes between two main types of inflows that have been identified, worker remittances (mostly familial aid from migrants abroad) and non-resident deposits (NRDs), which are investment-based. Findings of the report confirm the potential role that the Lebanese diaspora can play to reverse development losses, and to shape the development path of the country.  

The report is structured into five sections: defining and measuring remittances which are crucial to understanding their impact; examining their contribution to the economy; identifying macro and micro determinants; analyzing their socio-economic impact pre and post the financial system collapse as improper statistical measurement may cloud conclusions about remittances' actual impact on society and the economy. The report concludes by offering clear recommendations to streamline remittance flows and optimize their social and economic impact on households.


Document Type
Regions and Countries