Remittance payments hit record in 2017: World Bank

WASHINGTON: Payments from immigrants back to their home countries rebounded to reach a new record in 2017 but the costs of transferring funds also increased, the World Bank said yesterday.

The stronger-than-expected recovery in remittances – payments that are key to supporting the economies of many poor countries – was driven by growth in Europe, Russia and the United States, the World Bank said in a report.

The bank estimates that officially recorded remittances to low- and middleincome countries reached US$466 billion (RM1.82 trillion) in 2017, an increase of 8.5% over US$429 billion in 2016. They are expected to increase by about 4% this year.

Remittance inflows improved in all regions and the top remittance recipients were India with US$69 billion, followed by China (US$64 billion), the Philippines (US$33 billion), Mexico (US$31 billion), Nigeria (US$22 billion), and Egypt (US$20 billion).

The global average cost of sending US$200 was 7.1% in the first quarter of 2018, and sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4%.

By region, Europe and Central Asia saw the biggest growth last year, jumping 21%, while Sub-Saharan Africa rose 11%.

East Asia and the Pacific saw the biggest inflows of US$130 billion, as South Asia received US$117 billion, followed by Latin America with US$80 billion. – AFP