In accordance with the latest report by the World Bank (WB) titled ‘World Bank’s Remittance Prices Worldwide Database’, India became the world’s largest recipient of remittances by receiving USD 87bn in 2021. The United States (US) was its biggest source, accounting for over 20% of these funds.
- India is followed by China, Mexico, the Philippines, and Egypt.
- In India, remittances are projected to grow 3% in 2022 to USD 89.6 billion.
Key Points:
i.Remittances to low and middle income countries are projected to have grown a strong 7.3% to reach USD 589 billion in 2021.
- This is for the second consecutive year, remittance flows to low- and middle-income countries (excluding China) are expected to surpass the sum of foreign direct investment (FDI) and overseas development assistance (ODA).
ii.In line with global macroeconomic forecasts, remittances are projected to continue to grow by 2.6% in 2022.
iii.Remittances registered strong growth in most regions. Flows increased by 21.6% in Latin America and the Caribbean, 9.7% in Middle East and North Africa, 8% in South Asia, 6.2% in Sub-Saharan Africa, and 5.3% in Europe and Central Asia.
iv.In East Asia and the Pacific, remittances fell by 4% though excluding China.
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About World Bank:
The World Bank was created at the 1944 Bretton Woods Conference, along with the International Monetary Fund (IMF).
President– David Robert Malpass (13th President)
Headquarters– Washington DC, United States of America