Remittances and other diaspora inflows have long played an important role in Lebanon’s economy, bringing in an average of 7.15 billion US Dollars (USD) each year, over the past 10 years. The collapse of Lebanon’s economy, driven by the economic and fiscal crisis of late 2019; the Beirut port explosion in August 2020; and rising global food prices due to the war in Ukraine and the Covid-19 pandemic have made remittances even more important.
Understanding the role remittances and other diaspora flows play as a social safety net for Lebanese families could help the humanitarian community better assess coping strategies in the context of Lebanon’s severe and overlapping crises, and assist in the design of more relevant and robust approaches to aid delivery.
Lebanon is now the most remittance-dependent country on the planet, with remittances accounting for a staggering 53.8% of GDP in 2021. While it is difficult to determine the full extent to which Lebanese families receive remittances, an estimated 15% to 30% of households in 2022 rely on remittances as a source of income, up from 10% in 2018 and 2019. Notably, overall remittance volumes actually decreased over a five-year period, down to USD 6.6 billion in 2021, from a peak of USD 7.8 billion in 2016.
