Remittance flows to India outstrip expectations
INDIA, the world’s largest recipient of remittances, received $87 billion (£65bn) in 2021 with the United States being the biggest source, accounting for over 20 per cent of these funds, according to the World Bank.
Remittances to south Asia likely grew around eight per cent to $159bn (£119bn) in 2021.
India was followed by China, Mexico, the Philippines and Egypt in receiving remittances, the Washington-based global lender said in its report, which came out last Wednesday (17).
“Flows to India (the world’s largest recipient of remittances) are expected to reach $87bn, a gain of 4.6 per cent – with the severity of Covid-19 caseloads and deaths during the second quarter (well above the global average) playing a prominent role in drawing altruistic flows (including for the purchase of oxygen tanks) to the country,” the World Bank said.
It added that remittances to low- and middle-income countries from citizens working abroad will rise by more than expected in 2021 following a strong economic recovery in the United States and Europe as well as rising oil revenue in Russia and the gulf.
Remittances are expected to have grown by 7.3 per cent to $589bn this year following a 1.7 per cent decline in 2020 as the fallout from the Covid-19 pandemic tipped the world economy into a recession, the bank added.
“The immediate impact of the crisis on remittance flows was very deep,” said Dilip Ratha, lead author of the report and head of the Global Knowledge Partnership on Migration and Development (KNOMAD).
“The surprising pace of recovery is welcome news. To keep remittances flowing, especially through digital channels, providing access to bank accounts for migrants and remittance service providers remains a key requirement,” Ratha said.