India tops global remittance charts at $125 billion in 2023: World Bank Report

The latest report from the World Bank shows that India is leading in receiving money sent by people working abroad, reaching a whopping $125 billion in 2023.

While countries with lower and middle incomes received more money overall, there were some challenges, especially in the Middle East and North Africa, where the money sent home declined. The report emphasizes how important it is to have job markets that include everyone and policies that protect people.

Key points from the World Bank’s latest report:

1. Global Increase in Money Sent Home: In 2023, the money sent to lower and middle-income countries increased by 3.8%, totaling a huge $669 billion.

2. India’s Important Role: India continues to be the top country receiving money from people working abroad, maintaining its significant position in this changing situation.

3. Reasons for Growth: Places with strong job markets, like advanced countries and those in the Gulf Cooperation Council (GCC), helped migrants send money back home.

4. Good News in South Asia: In South Asia, the money sent to India went up a lot, contributing to the overall positive trend. The whole South Asian region saw a 7.2% increase in money sent home in 2023.

4. India’s Economic Performance: India did even better than expected, receiving $125 billion in remittances for the year. This was because the job market in the United States was strong, and there was a lot of job growth in Europe.

Challenges and Risks:

1. Trouble in Some Regions: The Middle East and North Africa had less money sent home for the second year in a row, mainly because Egypt received a lot less money.

2. Issues in Europe and Central Asia: Money sent to Europe and Central Asia decreased by 1.4% after a big increase in 2022.

3. Global Economic Situation: The top five countries getting the most money, including India, are Mexico, China, the Philippines, and Egypt. The report predicts a 3.1% increase in money sent home in 2024, but there might be problems because the economy and job markets in rich countries might not be doing well.

4. High Costs: It’s still expensive to send money home, with an average cost of 6.2% to send $200 as of the second quarter of 2023. Banks are the most expensive, with an average cost of 12.1%.

Using Money Sent Home for Development:

1. Diaspora Bonds: The report talks about the potential of using money sent home for development, especially through diaspora bonds. These bonds can use the savings of people living in foreign countries, providing a stable source of money.

2. Opportunities for Getting More Money: Money sent home has been more than the combination of foreign investments and official help in recent years, offering chances to get more private money for development.

About World Bank

The World Bank is an international financial institution that provides financial and technical assistance to developing countries for various development projects and initiatives.

• The World Bank was established in 1944 and is headquartered in Washington, D.C., USA.
• Current President of World Bank – Ajaypal Singh Banga is an Indian-born American business executive. He is currently the president of the World Bank Group.

Thanks

Happy reading!!