UNB, Dhaka :
Remittances to developing countries fell for a 2nd consecutive year in 2016, a trend not seen in three decades, says the latest edition of the Migration and Development Brief released on Friday during the World Bank’s Spring Meetings. Remittances to major receiving countries are estimated to have fallen last year, including Bangladesh 11.1 percent, Nigeria 10 percent and Egypt 9.5 percent, says the World Bank.
Remittances to the South Asia region declined by an estimated 6.4 percent to $110 billion in 2016 due to lower oil prices and fiscal tightening in the GCC countries.
In addition to the decline in remittances to India and Bangladesh, Nepal also saw a contraction of 6.7 percent, while Pakistan saw modest growth of 2.8 percent.
Remittances to the region are expected to grow by a muted 2 percent to $112 billion in 2017.
The WB estimates that officially recorded remittances to developing countries amounted to $429 billion in 2016, a decline of 2.4 percent over $440 billion in 2015.
Global remittances, which include flows to high-income countries, contracted by 1.2 percent to $575 billion in 2016 from $582 billion in 2015. Low oil prices and weak economic growth in the Gulf Cooperation Council (GCC) countries and the Russian Federation are taking a toll on remittance flows to South Asia and Central Asia, while weak growth in Europe has reduced flows to North Africa and Sub-Saharan Africa.
The decline in remittances, when valued in US dollars, was made worse by a weaker euro, British pound and Russian ruble against the US dollar. As a result, many large remittance-receiving countries saw sharp declines in remittance flows. India, while retaining its top spot as the world’s largest remittance recipient, led the decline with remittance inflows amounting to $62.7 billion last year, a decrease by 8.9 percent over $68.9 billion in 2015.
The exceptions among major remittance recipients were Mexico and the Philippines, which saw inflows increase by an estimated 8.8 percent and 4.9 percent, respectively, last year.
“Remittances are an important source of income for millions of families in developing countries. As such, a weakening of remittance flows can have a serious impact on the ability of families to get health care, education or proper nutrition,” said Rita Ramalho, acting Director of the World Bank’s Global Indicators Group.
Remittances to developing countries fell for a 2nd consecutive year in 2016, a trend not seen in three decades, says the latest edition of the Migration and Development Brief released on Friday during the World Bank’s Spring Meetings. Remittances to major receiving countries are estimated to have fallen last year, including Bangladesh 11.1 percent, Nigeria 10 percent and Egypt 9.5 percent, says the World Bank.
Remittances to the South Asia region declined by an estimated 6.4 percent to $110 billion in 2016 due to lower oil prices and fiscal tightening in the GCC countries.
In addition to the decline in remittances to India and Bangladesh, Nepal also saw a contraction of 6.7 percent, while Pakistan saw modest growth of 2.8 percent.
Remittances to the region are expected to grow by a muted 2 percent to $112 billion in 2017.
The WB estimates that officially recorded remittances to developing countries amounted to $429 billion in 2016, a decline of 2.4 percent over $440 billion in 2015.
Global remittances, which include flows to high-income countries, contracted by 1.2 percent to $575 billion in 2016 from $582 billion in 2015. Low oil prices and weak economic growth in the Gulf Cooperation Council (GCC) countries and the Russian Federation are taking a toll on remittance flows to South Asia and Central Asia, while weak growth in Europe has reduced flows to North Africa and Sub-Saharan Africa.
The decline in remittances, when valued in US dollars, was made worse by a weaker euro, British pound and Russian ruble against the US dollar. As a result, many large remittance-receiving countries saw sharp declines in remittance flows. India, while retaining its top spot as the world’s largest remittance recipient, led the decline with remittance inflows amounting to $62.7 billion last year, a decrease by 8.9 percent over $68.9 billion in 2015.
The exceptions among major remittance recipients were Mexico and the Philippines, which saw inflows increase by an estimated 8.8 percent and 4.9 percent, respectively, last year.
“Remittances are an important source of income for millions of families in developing countries. As such, a weakening of remittance flows can have a serious impact on the ability of families to get health care, education or proper nutrition,” said Rita Ramalho, acting Director of the World Bank’s Global Indicators Group.
