The World Bank released its latest Migration and Development Brief.
What are the highlights of the report?
- The Russia- Ukraine war will slow the growth of remittance flows to low- and middle-income countries (LMICs) to 4.2% in 2022 from 8.6% in 2021. It is estimated that remittances to LMICs, this year, will reach $630 billion.
- Remittances to Ukraine will increase by 20% in 2022.
- Remittances to several other Central Asian countries will reduce this year. Inflation combined with a decline in remittances will exacerbate the problem of hunger and poverty in these countries.
Which country is the largest recipient of remittances in Europe and Central Asia?
Ukraine.
Which country is the main source of remittances to Central Asia?
Russia.
How did the Russia-Ukraine war affect remittance flows?
Disruptions due to the war and the exclusion of Russia from SWIFT (Society for Worldwide Interbank Financial Telecommunications) affected the international payment systems.
Which countries were the top five recipients of remittances in 2021?
India, Mexico, China, the Philippines, and Egypt.
What is the average cost of sending money?
Globally, the average cost of sending USD 200 was 6% in the fourth quarter of 2021. This is double the United Nations Sustainable Development Goal (UN SDG) target of 3%. Lowering remittance fees by 2% will result in annual savings of $12 billion for international migrants from the LMICs.