India, the third-largest economy in Asia, is expected to continue being the top recipient of remittances in the world. Migrant workers from India are set to send home a record USD 100 billion in 2022, putting its inflows ahead of China, Mexico, and the Philippines, ANI reported, quoting the World Bank.
"Growth in remittance flows is estimated at 9.3 percent for Latin America and the Caribbean, 3.5 percent in South Asia, 2.5 percent in the Middle East and North Africa, and 0.7 percent in East Asia and the Pacific." "In 2022, for the first time, a single country, India, is on track to receive more than USD 100 billion in yearly remittances," the World Bank said in a statement.
Remittances to South Asia are expected to increase by 3.5 percent to USD 163 billion by 2022, the report said. However, it says there is a large disparity across countries, from India's projected 12 percent gain to Nepal's 4 percent increase to an aggregate decline of 10 percent for the region's remaining countries.
Remittances to India were enhanced by wage hikes and a strong labour market in the United States and other Organization for Economic Co-operation and Development (OECD) countries, the report adds.
According to the World Bank, studies show that remittances help recipient households build resilience, for example, through financing better housing and coping with losses in the aftermath of disasters.
Remittance flows to developing regions were shaped by several factors in 2022. A reopening of host economies as the COVID-19 pandemic receded supported migrants' employment and their ability to continue helping their families back home, the report noted.
Meanwhile, the share of remittances from the Gulf Cooperation Council (GCC) region in India’s inward remittances is estimated to have declined from more than 50 percent in 2016–17 to about 30 percent in 2020–21, according to the RBI.
With the steady migration of skilled workers, advanced economies (AEs), particularly the United States, the United Kingdom, and Singapore, have emerged as important remittance source countries, accounting for 36 percent of total remittances in 2020–21. The US surpassed the UAE as the top source country, accounting for 23 percent of total remittances in 2020–21, the RBI said in its July report.
The share of the traditional remittance recipient states of Kerala, Tamil Nadu, and Karnataka, which had strong dominance in the GCC region, has almost halved in 2020-21, accounting for only 25 percent of total remittances since 2016-17, while Maharashtra has emerged as the top recipient state, surpassing Kerala, it added.
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