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Growth in 2023: Remittance flows to low- and
middle-income countries (LMICs) grew by 0.7% to reach $656 billion in 2023.
Comparison with Other Financial
Sources:
Remittances remained the largest source of external finance for LMICs,
surpassing foreign direct investment (FDI) and official development assistance
(ODA).
Normalization After Pandemic: The growth rate of remittances
in 2023 moderated after an 8.3% increase in 2021-22, reflecting a return to
normal trends post-pandemic.
Decline in FDI: FDI declined sharply, widening
the gap between remittance flows and FDI.
Reorganized Table of Remittance Flows
|
Remittance flow to LMIC from year 2017 to year 2025 (forecasted) ($ Billions
& Growth Rate %) |
|||||||||
|
Region |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023e |
2024f |
2025f |
|
Low- and middle-income countries |
475 (9.2%) |
522 (9.7%) |
548 (5.0%) |
542 (-1.1%) |
601 (10.8%) |
651 (8.3%) |
656 (0.7%) |
671 (2.3%) |
690 (2.8%) |
|
East Asia and Pacific |
129 (5.3%) |
137 (6.9%) |
143 (4.0%) |
132 (-8.0%) |
128 (-2.5%) |
132 (2.8%) |
134 (1.8%) |
136 (0.9%) |
137 (1.4%) |
|
- excluding China |
65 (5.8%) |
70 (8.3%) |
75 (6.4%) |
72 (-3.4%) |
75 (4.5%) |
81 (7.4%) |
85 (4.8%) |
88 (3.2%) |
90 (3.4%) |
|
Europe and Central Asia |
52 (21.1%) |
59 (12.9%) |
62 (5.2%) |
58 (-7.0%) |
67 (15.4%) |
79 (18.1%) |
71 (-10.3%) |
69 (-1.9%) |
72 (3.6%) |
|
Latin America and Caribbean |
81 (10.9%) |
89 (9.9%) |
96 (8.2%) |
104 (7.4%) |
131 (26.2%) |
144 (10.5%) |
155 (7.7%) |
160 (2.7%) |
162 (1.6%) |
|
Middle East and North Africa |
54 (13.4%) |
55 (1.8%) |
57 (3.9%) |
59 (4.1%) |
67 (12.8%) |
65 (-3.2%) |
55 (-14.8%) |
58 (4.3%) |
61 (5.5%) |
|
South Asia |
117 (6.0%) |
132 (12.3%) |
140 (6.1%) |
147 (5.2%) |
157 (6.7%) |
176 (12.4%) |
186 (5.2%) |
193 (4.2%) |
201 (4.1%) |
|
Sub-Saharan Africa |
42 (9.6%) |
49 (17.1%) |
50 (0.9%) |
43 (-13.8%) |
51 (18.7%) |
55 (6.8%) |
54 (-0.3%) |
55 (1.5%) |
56 (1.5%) |
|
High-income countries |
165 |
174 |
180 |
174 |
193 |
192 |
202 |
212 |
223 |
|
World |
641 |
696 |
728 |
717 |
794 |
843 |
857 |
883 |
913 |
Global Outlook of Remittance:
|
Category |
Number (in millions) |
Source |
Year |
|
Global Stock of
Migrants |
302.1 |
Estimated |
2023 |
|
Economic Migrants |
252 |
World Bank |
2023 |
|
Refugees and Asylum
Seekers |
50.3 |
UNHCR |
2023 |
|
Internal Migrants |
760 |
UNDP |
2009 |
|
|
1364.4 |
|
|
Top Destination Countries: The United States, Germany,
Saudi Arabia, Russia, and the United Kingdom are the top destination countries
for migrants.
Top Origin Countries: India, Ukraine, China, Mexico,
and Venezuela are the largest origin countries for migrants.
Largest Migration Corridor: The Mexico to the United States
corridor is the largest in the world, with significant increases in Mexican
immigrant stock from 2023 to 2024.
US Foreign-born Population: The foreign-born population in
the United States reached 51.6 million in March 2024.
Impact of Conflicts: Conflicts in Gaza, Ukraine,
Sudan, Congo, and Myanmar have led to large movements of people, with
significant numbers of refugees.
Remittance Dependence in Pacific
Islands: Pacific
Island economies like Tonga, Samoa, and Vanuatu heavily depend on remittances,
with Tonga's remittances accounting for 41% of its GDP in 2023.
Destination for Skilled Migrants: OECD countries and high-income
regional countries like Singapore, South Korea, Japan, and Australia are the
main destinations for skilled migrants from East Asia and the Pacific.
Destination for Less-Skilled
Migrants: GCC
countries and dual economies like China, Malaysia, and Thailand attract
less-skilled migrants from the East Asia and Pacific region.
Remittance Flows in East Asia and
Pacific:
Remittance flows to East Asia and the Pacific were boosted by favorable
external economic conditions and tight labor markets in OECD and GCC countries.
Tourism and Remittances: The slow recovery of tourism in
major countries like China and Japan affected remittance flows by reducing
demand for less-skilled migrant workers.
Remittance Growth in the
Philippines:
Remittances to the Philippines grew at 2.8% in 2023, reaching $39 billion,
while Indonesia saw over 10% growth to $14.5 billion.
Remittance Growth in South Asia: South Asia was the leading
remittance recipient region in 2023, with remittances growing at 5.2% to $186
billion, down from 12% in 2022.
Remittance Flows to India: Remittances to India grew by
7.5% in 2023, reaching $120 billion, driven by demand in the US and GCC
countries.
Nepal’s Status Remittance Growth:
In 2023, remittances to Nepal
grew by 17% to reach $10.8 billion. This growth is attributed to strong labor
markets in the GCC countries, which are primary destinations for Nepali
migrants.
Economic Impact: Remittances are
a crucial lifeline for many Nepali households, contributing to a significant
reduction in poverty.
Dependence on Remittances: Nepal
is highly dependent on remittances, with a share of 26.5% of GDP in 2023,
making it the most dependent country in South Asia and the sixth most dependent
globally.
Future Outlook: Remittance growth
is forecasted to be between 4.6% and 5% in 2024, reaching around $11.4 billion,
and approximately $12 billion in 2025.
Some of the WB Data:
Top Remittance Recipients in South Asia 2023
