Paul Redfern
1 December 2011
London — Remittance flows to developing countries are expected to total $351 billion this year, according to a newly updated World Bank brief on global migration and remittances.
More than 215 million people live outside their countries of birth. Remittances sent home by migrants accounted for 2 per cent of GDP for all developing countries in 2008, but 6 per cent of GDP for low-income countries in particular.
In several small low-income countries, remittances exceed a fifth of GDP and provide the largest source of foreign exchange. Remittances to developing countries are also three times the size of official development assistance.
In 2010, remittances recovered to the 2008 level of $325 billion after having dropped to $307 billion in 2009. The drop was as a result of the global financial crisis.
Flows are projected to rise to $346 billion in 2011 and $374 billion by 2012, although this may well depend on how the financial crisis in Europe in particular unfolds.
The top recipients of officially recorded remittances, estimated for 2011, are India ($58 billion), China ($57 billion), Mexico ($24 billion), and the Philippines ($23 billion). Other large recipients include Pakistan, Bangladesh, Nigeria, Vietnam, Egypt and Lebanon.
Refugees and migrants risk their lives travelling from Africa to Europe in over-crowded and unseaworthy vessels to escape persecution and violence or simply to find a better life.
The World Bank says that while the economic slowdown “is dampening employment prospects for migrant workers in some high-income countries,” global remittances are expected to stay on a growth path and, by 2014, are forecast to reach $515 billion.
Of that, $441 billion will flow to developing countries.
“Despite the global economic crisis that has impacted private capital flows, remittance flows to developing countries have remained resilient, posting an estimated growth of 8 per cent in 2011,” said Mr Hans Timmer, director of the World Bank’s Development Prospects Group.
Remittances to sub-Saharan Africa are expected to grow by 7.6 per cent, despite the difficult economic conditions in Europe and other destinations of African migrants.
AllAfrica – All the Time