The World Bank has said India continues to be the leading nation in remittances, pulling in $70 billion from its global migrant workforce in 2014.
World Bank’s study of remittance, the money workers and professionals working in foreign lands send back to their native countries, attributed this mainly to weak economic growth in Europe, deterioration of the Russian economy and the depreciation of the euro and ruble.
Remittances to the developing world are expected to reach $440 billion in 2015, an increase of 0.9 per cent over the previous year. Global remittances, including those to high income countries, are projected to grow by 0.4 per cent to $586 billion.
United States, Saudi Arabia, Germany, Russia and the United Arab Emirates (UAE) remained the top five migrant destination countries. India, China, Philippines, Mexico and Nigeria are the top five remittance recipient countries, in terms of value of remittances, the report said.
“Total remittances in 2014 reached $583 billion. This is more than double the ODA (official development assistance) in the world. India received $70 billion, China $64 billion, the Philippines $28 billion. With new thinking, these mega flows can be leveraged to finance development and infrastructure projects,” said Kaushik Basu, World Bank chief economist and senior vice-president.
“Israel and India have shown how macro liquidity crises can be managed by tapping into the wealth of diaspora communities. Mexican migrants have boosted the construction sector. Tajikistan manages to nearly double its consumption by using remittance money. Migrants and remittances are clearly major players in today’s global economy,” Basu said.
“Total remittances in 2014 reached USD 583 billion. This is more than double the ODA in the world. India received USD 70 billion, China USD 64 billion, the Philippines USD 28 billion. With new thinking these mega flows can be leveraged to FINANCE development and infrastructure projects,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President.
“Israel and India have shown how macro liquidity crises can be managed by tapping into the wealth of diaspora communities. Mexican migrants have boosted the construction sector. Tajikistan manages to nearly double its consumption by using remittance money. Migrants and remittances are clearly major players in today’s global economy,” Basu said.
In line with the expected global economic recovery next year, the global flows of remittances are expected to accelerate by 4.1 percent in 2016, to reach an estimated USD6 10 billion, rising to USD 636 billion in 2017.
Remittance flows to developing countries are expected to recover in 2016 to reach USD 459 billion, rising to USD 479 billion in 2017, the World Bank said.
The global average cost of sending USD 200 held steady at 8 per cent of the value of the transaction, as of the last quarter of 2014.
Despite its potential to lower costs, the use of mobile technology in cross-border transactions remains limited, due to the regulatory burden related to combating money laundering and terrorism FINANCING, the report said.
International remittances sent via mobile technology accounted for less than two percent of remittance flows in 2013, according to the latest available data.
“The outlook, however, is uncertain,” said the report. “The substantial financial resources and long-term infrastructure development plans of the GCC countries imply that they will continue to demand migrant workers. However, remittance flows could decline if the oil price were to remain low for a few years.”
World Bank’s study of remittance, the money workers and professionals working in foreign lands send back to their native countries, attributed this mainly to weak economic growth in Europe, deterioration of the Russian economy and the depreciation of the euro and ruble.
Remittances to the developing world are expected to reach $440 billion in 2015, an increase of 0.9 per cent over the previous year. Global remittances, including those to high income countries, are projected to grow by 0.4 per cent to $586 billion.
United States, Saudi Arabia, Germany, Russia and the United Arab Emirates (UAE) remained the top five migrant destination countries. India, China, Philippines, Mexico and Nigeria are the top five remittance recipient countries, in terms of value of remittances, the report said.
“Total remittances in 2014 reached $583 billion. This is more than double the ODA (official development assistance) in the world. India received $70 billion, China $64 billion, the Philippines $28 billion. With new thinking, these mega flows can be leveraged to finance development and infrastructure projects,” said Kaushik Basu, World Bank chief economist and senior vice-president.
“Israel and India have shown how macro liquidity crises can be managed by tapping into the wealth of diaspora communities. Mexican migrants have boosted the construction sector. Tajikistan manages to nearly double its consumption by using remittance money. Migrants and remittances are clearly major players in today’s global economy,” Basu said.
“Total remittances in 2014 reached USD 583 billion. This is more than double the ODA in the world. India received USD 70 billion, China USD 64 billion, the Philippines USD 28 billion. With new thinking these mega flows can be leveraged to FINANCE development and infrastructure projects,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President.
“Israel and India have shown how macro liquidity crises can be managed by tapping into the wealth of diaspora communities. Mexican migrants have boosted the construction sector. Tajikistan manages to nearly double its consumption by using remittance money. Migrants and remittances are clearly major players in today’s global economy,” Basu said.
In line with the expected global economic recovery next year, the global flows of remittances are expected to accelerate by 4.1 percent in 2016, to reach an estimated USD6 10 billion, rising to USD 636 billion in 2017.
Remittance flows to developing countries are expected to recover in 2016 to reach USD 459 billion, rising to USD 479 billion in 2017, the World Bank said.
The global average cost of sending USD 200 held steady at 8 per cent of the value of the transaction, as of the last quarter of 2014.
Despite its potential to lower costs, the use of mobile technology in cross-border transactions remains limited, due to the regulatory burden related to combating money laundering and terrorism FINANCING, the report said.
International remittances sent via mobile technology accounted for less than two percent of remittance flows in 2013, according to the latest available data.
The Indian diaspora sent home $70 billion (Rs 4.34 lakh crore) in 2014, topping for the seventh year the list of countries receiving money from emigrants, according to data released by the World Bank.
That’s enough to buy India four bullet-train corridors, more than the money the government raised from auctioning 67 coal blocks, and more than the money Indian companies collectively raised from the market in 2014.
The growth rate of foreign currency, however, slowed to 0.6% in 2014 from 1.7% in 2013. The reason, according to the World Bank, could be the appreciation of the rupee against major currencies during the year.
Source: World Bank; Figures in $ billion
Source: World Bank; Figures in $ billion
Indian remittances have more than tripled over the last decade, from more than $22 billion to more than $70 billion at the end of 2012.
Major inflows continue to be from the United Arab Emirates ($12.63 billion), followed by the United States ($11.18 billion) and Saudi Arabia ($10.84 billion).
Source; World Bank; Figures in $ billion
Source; World Bank; Figures in $ billion
Around 18% of the $70 billion inflow comes from United Arab Emirates; Indian emigrants in the US contribute 15.88% and those in Saudi Arabia 15.40%.
There are 247 million migrants across the world, larger than the earlier estimate of 232 million. The number is expected to surpass 250 million this year.
Remittances by emigrants to developing countries, including India and China, reached $436 billion in 2014, an increase of 4% from 2013. The forecast for 2015 is moderate growth (0.9%) at $440 billion.
The decline in oil prices has not affected remittances by Indians from Gulf Co-operation Council (GCC) member-countries, World Bank research noted.
“The outlook, however, is uncertain,” said the report. “The substantial financial resources and long-term infrastructure development plans of the GCC countries imply that they will continue to demand migrant workers. However, remittance flows could decline if the oil price were to remain low for a few years.”
The Indian diaspora is about 21 million people, spread across more than 200 countries, including the Principality of Liechtenstein and the People’s Republic of Lao, according to 2012 data, the latest available, of the Ministry of External Affairs.
There are more than 2 million Indians each in the United States and Malaysia. The UAE has about 1.75 millions and Saudi Arabia 1.78 million.
There are a substantial numbers of Indians in Yemen (111,000), Israel (78,000), Iran (4,000), Iraq (9,000), Zambia (20,500) and Zimbabwe (10,500).
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