India Leads Global Remittance Recipients with $129 Billion Inflow in 2024
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New Delhi, Dec 19 (NationPress) India leads the global rankings for remittance recipients in 2024, with an estimated inflow of $129 billion. Following India are Mexico with $68 billion, China at $48 billion, the Philippines with $40 billion, and Pakistan with $33 billion, based on the latest statistics from World Bank economists.
This year's growth rate for remittances is projected at 5.8 percent, a significant increase from the 1.2 percent recorded in 2023, as detailed in a World Bank blog post.
The report highlights that the recovery of job markets in high-income countries, especially within the Organization for Economic Co-operation and Development (OECD), post-COVID-19 pandemic, has been a primary factor driving these remittances. This trend is particularly evident in the United States, where the employment of foreign-born workers has rebounded, now 11 percent higher than the pre-pandemic levels observed in February 2020.
According to the report, officially recorded remittances to low- and middle-income countries (LMICs) are expected to reach $685 billion in 2024.
The blog post underscores that remittances continue to surpass other forms of external financial flows to LMICs and are likely to grow due to significant migration pressures stemming from demographic shifts, income disparities, and climate change.
It is important to note that remittances have consistently outpaced other external financial flows, significantly surpassing Foreign Direct Investment (FDI). The gap between remittances and FDI is expected to broaden in 2024, as indicated by the report.
Over the past decade, remittances have surged by 57 percent, while FDI has seen a decline of 41 percent. The World Bank report suggests that remittances are likely to continue their upward trajectory due to substantial migration pressures influenced by demographic trends, income disparities, and climate change.
The blog urges countries to acknowledge the magnitude and resilience of remittances and to explore ways to utilize these funds for poverty reduction, financing health and education, promoting financial inclusion among households, and enhancing access to capital markets for both state and non-state enterprises.
For South Asia, remittance flows are anticipated to experience the highest growth rate in 2024, projected at 11.8 percent, fueled by robust flows to India, Pakistan, and Bangladesh, as noted by economists Dilip Ratha, Sonia Plazaeung, and financial analyst Ju Kim.
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