The report estimates that officially recorded remittances to low- and middle-income countries reached US$466 billion in 2017, an increase of 8.5% over US$429 billion in 2016. The number was made possible by a total of 266 million international migrants.
Top 10 remittance receivers.
|
Remittances are expected to continue to increase in 2018, by 4.1% to reach US$485 billion. Global remittances are expected to grow 4.6% to US$642 billion in 2018.
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 stronger than expected recovery in remittances is driven by growth in Europe, the Russian Federation, and the United States. The rebound in remittances, when valued in U.S. dollars, was helped by higher oil prices and a strengthening of the euro and ruble, the report stated.
Expatriate workers in the US and Saudi Arabia contributed the largest amount of remittances worldwide, with US$67 billion and US$38 billion, respectively. In the US alone, which has been the top destination for international migrants in the last 35 years, the majority of remittances was headed to Mexico, China, India, Philippines and Vietnam.
Factors contributing to high costs include de-risking measures taken by commercial banks and exclusive partnerships between national post office systems and a single money transfer operator, according to the report. These factors are constraining the introduction of cheaper and more efficient technologies-such as Internet and smartphone apps, and block chain-in remittance services.
"While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money. Eliminating exclusivity contracts to improve market competition and introducing more efficient technology are high-priority issues," said Dilip Ratha, lead author of the report.
