Global remittance increases by 5.3pc

KATHMANDU, APR 21:

Remittance flows to developing countries reached an estimated $401 billion in 2012 growing by 5.3 per cent compared to 2011, the World Bank said in its ‘Migration and Development Brief’ released on Friday. South Asian countries received $109 billion last year growing by 12.3 per cent.

India, China, Philippines and Mexico remain largest recipients of migrant remittance, though smaller developing countries, such as Tajikistan, Liberia, Kyrgyz Republic, Lesotho and Moldova receive the most as share of gross domestic product (GDP), it said.

Developing countries by region reveals substantial variation within and between regions. In 2012, remittance flows expressed in US dollars expanded rapidly to the Middle East and North Africa and South Asia, while Europe and Central Asia experienced a decline.

Increased remittance flows to Bangladesh and Pakistan propelled South Asia to emerge as the largest recipient region in 2012 although East Asia and the Pacific is expected to continue as the largest recipient region in medium term.

Flows to Latin America and the Caribbean, East Asia and Pacific, and Sub-Saharan Africa were broadly unchanged. the bank said.

India remains largest recipient country in world, receiving almost $70 billion in remittance in 2012. In addition to large numbers of unskilled migrants working mainly in Gulf Cooperation Council (GCC), India also has a large skilled diaspora sending money home, and as noted above, their prospects in major sending countries are improving.

Flows to Bangladesh, Pakistan and Nepal have been particularly robust, helped by strong economic growth in the GCC, it said.

Remittance to the region is projected to remain buoyant in the coming years, though growing more slowly than the high rates experienced in 2011 and 2012.

The World Bank has expected remittance growth at an average of 8.8 per cent annual rate during 2013-2015 to about $515 billion in 2015.

Source: THT