India to receive total remittance of $80 billion in 2018: World Bank
According to World Bank’s Migration and Development Brief, India will retain its position as world’s top recipient of remittances in 2018, receiving a total remittance of $80 billion from its diaspora. India is followed by China ($67 billion), Mexico and hilippines ($34 billion each) and Egypt ($26 billion).
Remittance: It is transfer of money by foreign worker to individual or family in their home country. It competes with international aid as one of the largest financial inflows to developing countries. It has direct impact on alleviating poverty for many households especially in developing and low- and middle-income countries.
Key Highlights Migration and Development Brief
Global remittances: Including flows to high-income countries, are projected to grow by 10.3% to $689 billion. However it is projected to moderate. They are expected to grow 3.7% to $715 billion in 2019.
Developing countries: Remittances to developing countries will increase by 10.8% to reach $528 billion in 2018, against a 7.8% growth in 2017.
Low- and middle-income countries: Future remittances to these countries are expected to grow moderately by 4% to $549 billion in 2019.
India: Over the last three years, India registered asignificant flow of remittances, from $62.7 billion in 2016 to $65.3 billion 2017. In 2017, remittances constituted 2.7% of India’s GDP.
South Asia: Remittances are projected to increase by 13.5% to $132 billion in 2018, a stronger pace than 5.7% growth seen in 2017. The upsurge is driven by stronger economic conditions in advanced economies, particularly US and increase in oil prices having positive impact on outflows from some Gulf Cooperation Council (GCC) countries such as UAE, which reported a 13% growth in outflows for first half of 2018.
Bangladesh and Pakistan have experienced strong upticks of 17.9% and 6.2% in 2018, respectively. For 2019, it is projected that remittances growth for region will slow to 4.3% due to moderation of growth in advanced economies, lower migration to GCC and the benefits from the oil price spurt dissipating. GCC is regional inter-governmental political and economic bloc of six oil rich middle-east countries viz. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.