Remittance

A remittance is a transfer of money, often by a foreign worker to an individual in their home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Workers' remittances are a significant part of international capital flows, especially with regard to labor-exporting countries. A remittance is a transfer of money, often by a foreign worker to an individual in their home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Workers' remittances are a significant part of international capital flows, especially with regard to labor-exporting countries. According to the World Bank, in 2018 overall global remittance grew 10% to US$689 billion, including US$528 billion to developing countries. Overall global remittance is expected to grow 3.7% to US$ 715 billion in 2019, including US$549 billion to developing nations. Due to its large diaspora and overseas expats population, India consecutively remains the top receiver of remittance, e.g. with US$80 billion in 2018, US$65.3 billion (2.7% of India's GDP) in 2017, US$ 62.7 billion in 2016 and US$70 billion in 2014, Other top recipients in 2018 were US$67 billion to China, US$34 billion each to Philippines and Mexico, US$26 billion to Egypt. Remittances are playing an increasingly large role in the economies of many countries. They contribute to economic growth and to the livelihoods of those countries. According to World Bank estimates, remittances will total US$573 billion in 2016, of which US$422 billion went to developing countries that involved 250 million migrant workers. For some individual recipient countries, remittances can be as high as a third of their GDP. International remittances have a major impact on the developing economies of the world with the majority of remittances, $441 billion in 2015, going to developing nations. This amount is nearly triple the $131 billion of global Official Development Assistance. For many developing nations, remittances received make up a significant portion of their economies often receiving over 10% of their GDP in remittances each year. Some countries, such as Tajikistan, receive over half of their national GDP in remittances. Note: The countries mentioned below are the largest 15 recipient countries of remittances only for the year 2013. World Bank data is used for all countries and years. As a share of GDP, the top recipients of remittances in 2013 were Timor-Leste (16.6%), Tajikistan (42.1%), Kyrgyzstan (31.5%), Nepal (28.8%), Moldova (24.9%), Lesotho (24.4%), Samoa (23.8%), Haiti (21.1%), Armenia (21.0%), The Gambia (19.8%), Liberia (18.5%), Lebanon (17.0%), Honduras (16.9%), El Salvador (16.4%), Kosovo (16.1%), Jamaica (15.0%) and Bosnia and Herzegovina (8.82%, which is 1.540 billion $ for 2017 on 31 December 2017 conversion rate between € and US$). The US has been the leading source of remittances globally every year since 1983. Russia, Saudi Arabia, and Switzerland have been the next largest senders of remittances since 2007. A majority of the remittances have been directed to Asian countries like India (approx. 62.7 billion USD in 2016), China (approx. 61.0 billion USD in 2016), the Philippines (approx. 29.9 billion USD in 2016), Pakistan (19.8 billion USD in 2016) and more.