Remittances to India this year are likely to increase to US$70 billion (about $85 billion), the highest in the world, followed by US$66 billion (about $80.5 billion) to China, a World Bank Report on Global Migration and Remittances said.
The sharp increase in remittances to India has come from the Gulf countries.
Regions with large numbers of migrants in oil exporting countries continue to see robust growth in inward remittance, compared with those whose migrant workers are largely concentrated in the advanced economies, especially Western Europe.
“South Asia, Middle East, North Africa, East Asia and Pacific regions, with large numbers of workers in the Gulf Cooperation Council (GCC) countries, are seeing better-than-expected growth in remittances,” the World Bank said.
Steady increase
Total remittance to the developing countries may reach US$406 billion (about $495 billion) this year, registering an increase of 6.5% over the previous year.
Remittances to developing countries are projected to grow by 7.9% in 2013, 10.1% in 2014 and 10.7% in 2015 to reach US$534 billion (about $651 billion).
“Although migrant workers have been adversely affected by the slow growth in the global economy, remittance volumes have remained remarkably resilient. These remittances provide lifeline to poor families and a steady and reliable source of foreign currency to many poor countries,” World Bank Development Prospects Group Director said.
Major recipients
Among the other top remittance receivers are the Philippines and Mexico (US$24 billion or $29.25 billion each) and Nigeria US$21 billion ($25.60 billion).
Egypt, Pakistan, Bangladesh, Vietnam and Lebanon are also large recipients.
As a percentage of Gross Domestic Product, the top recipients of remittances in 2011 were Tajikistan (47%), Liberia (31%), Kyrgyz Republic (29%), Lesotho (27%), Moldova (23%), Nepal (22%), and Samoa (21%).
Remittances for South Asia are expected to reach US$109 billion ($132.86 billion) in 2012, an increase of 12.5% over 2011.
East Asia and the Pacific would attract US$114 billion (about $139 billion), an increase of 7.2% while Middle East and North Africa would receive US$47 ($57.28 billion), an increase of 8.4%
The World Bank expects continued growth in remittance flows to all regions of the world, although persistent unemployment in Europe and hardening attitudes towards migrant workers in some places present serious downside risks.
Another obstacle to growth of remittance flows is the high cost of sending money, which averaged 7.5% in the third quarter of 2012 for the top 20 bilateral remittance corridors and 9% for all countries for which cost data were available.
