REMITTANCES TO INDIA ROSE 10% IN 2017: WORLD BANK REPORT

More money came into India in the form of remittances in 2017 as the country retained the top spot as the world’s largest recipient with total inflows of $69 billion.

After a steep decline in 2016 (–8.9%), the remittance growth rate in India picked up to 9.9% in 2017 with total inflows rising from $62.7 billion in 2016, said a World Bank report released on Monday.

The upsurge in inward remittances is likely to continue into 2018 on the back of stronger economic conditions in advanced economies (particularly the US) and an increase in oil prices that should have a positive impact on Gulf Cooperation Council countries, according to the World Bank’s migration and remittance report. India was followed on the list by China ($64 billion), the Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion), and Egypt ($20 billion).

Officially recorded remittances to developing countries touched a new record of $466 billion in 2017, up 8.5% over 2016, said the report. The overall recovery was attributed to stronger growth in the European Union, the Russian Federation, and the United States.

The rebound in remittances, when valued in US dollars, was helped by higher oil prices and a strengthening of the euro and ruble, said Dilip Ratha, lead economist at the World Bank, in a blog post.

It is worth noting that economic growth in remittance-source countries of the global south, including India, impacts the flow of remittances, as does the growth of top migrant destinations in the global north, the report noted. The global average cost of sending $200 was 7.1% in the first quarter of 2018.

“The cost ranges from the most expensive average cost of 9.4% in Sub-Saharan Africa, to the lowest average cost of 5.2% in South Asia. The average cost is higher than the Sustainable Development Goal target of 3% in all regions,” Ratha said.

The India to Nepal and Singapore to India remittance corridor was among the lowest-cost routes to send money.