According to World Bank(WB)’s Migration and Development Brief 39 titled ‘Leveraging Diaspora Finances for Private Capital Mobilization’, India is considered a top remittance recipient with an estimated inward remittance flow of USD 125 Billion.
- Mexico stands at the second position with an estimated recipient value of USD 67 billion followed by China as third with USD 50 billion.
- This report indicates a continuing growth in remittance flows to low- and middle-income countries (LMICs) in 2023.
- The report raises awareness about the potential impact of global economic conditions on remittance flows.
Top Five Remittance Recipients:
| Rank | Country | Estimated Remittance Value (USD) |
|---|---|---|
| 1 | India | 125 Billion |
| 2 | Mexico | 67 Billion |
| 3 | China | 50 Billion |
| 4 | Philippines | 40 Billion |
| 5 | Egypt | 24 Billion |
India’s Position:
i.The key drivers of remittance growth in India are the tight labour market in the United States of America(USA), and high employment growth in Europe.
ii.India’s growth also boosted remittance inflows in South Asian region.
iii.The remittance was estimated to be USD 189 billion with a growth of 7.2% in 2023. In 2022, the remittance growth rate was at 12%.
- The report highlights that banks remain the most expensive channel for sending remittances, incurring a cost of 12.1%.
Other Regional inflow:
i.The Middle East and North Africa saw a decline in remittance flows for the second consecutive year, due to low remittance in Egypt.
ii.Remittance flows to Europe and Central Asia also decreased by 1.4% after a significant gain in 2022.
About the report:
i.Migration and Development Briefs report updates on migration and remittance flows happening across the globe.
ii.The report revealed that there is a continuous but slower growth rate(3.8%) in remittance flows to low- and middle-income countries (LMICs) in 2023 compared to 2021 and 2022 (with an average of 9%).
- The remittance growth rate is projected at 3.1% in 2024
iii.The overall remittance amounts to a total of USD 669 billion.
iv.The report suggests that due to global inflation and low growth prospects, there is a risk of a decline in real income for migrants in 2024.
v.Resilient labour markets in advanced economies and Gulf Cooperation Council (GCC) countries played a pivotal role in supporting migrants’ ability to send money home.
vi.The remittance costs is high, averaging 6.2% to send USD 200 as of the second quarter(Q2- July to September) of 2023.
About Arms of World Bank Group(WBG):
WBG consists of five development institutions namely,
i.International Bank for Reconstruction and Development (IBRD)
ii.International Development Association (IDA)
iii.International Finance Corporation (IFC)
iv.Multilateral Guarantee Agency (MIGA)
v.The International Centre for the Settlement of Investment Disputes (ICSID)
