World Bank: Recent data on Global Remittance
The World Bank recently released its “Migration and Development Brief”. The report said that the remittance flows to the low-income and middle-income countries were 1.9% lower in 2020 as compared to that of 2019. It was 540 billion USD in 2020 and 548 billion USD in 2019.
- The reduction in remittance inflows were smaller than that of 2009 Global Financial Crisis.
- However, the remittance inflows to China reduced by 30% in 2020.
- The inflows to the Caribbean and Latin countries increased by 6.5%
- Increased by 5.2% in south Asia
- Increased by 2.3% in North Africa
- In Pacific and East Asia, it fell by 7.9%
- Fell by 2.3% in North Africa and Middle East
- Fell by 9.7% in Central Asia and Europe
- Fell by 12.5% in Sub-Saharan Africa
- Apart from China, the remittance inflows declined greatly in Nigeria. It fell by 28%.
India and its Neighbourhood
- In 2019, India received 83.3 billion USD remittances. This fell by 0.2% in 2020. This was maximum in remittance from UAE. The remittance from UAE to India reduced by 17%.
- In Pakistan, the remittances increased by 17%. The biggest growth in remittances to Pakistan came from Saudi Arabia.
- The remittances in Bangladesh increased by 18.4%
- In Sri Lanka, it increased by 5.8%
- In Nepal, it fell by 2%
What is Remittance?
It is a sum of money sent from one country to other country. It can be business payments or remittances paid to a family member, friends.
How are remittances important?
- They help the currency to hold its value against a foreign currency.
- The World Bank says that the remittances are the second largest resource inflow for developing countries after FDI.
- As the flow of remittances increases, the currency value of receiving country increases and the value of foreign currency depreciates.
Month: Current Affairs - May, 2021
Category: Reports & Indexes Current Affairs
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