A World Bank report has revealed that India is one of the top recipients of remittance flows to Low and Middle Income Countries (LMICs) in 2023, although at a sluggish pace compared to that in previous years.
The report claimed that remittances to India reached $125 billion for the year, exceeding forecasts owing to the country’s strong employment growth in Europe and a competitive labour market in the United States.
Remittances to India saw a significant increase in the South Asian region, which added to the general upward trend.
While remittances to LMICs are expected to increase by 3.1% in 2024, this growth may be tempered by the expectation of weaker economic activity in several high-income countries and the possibility of weaker job markets.
Remittances increased 7.2% across the board in South Asia in 2023, the report added.
According to media reports, Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion) are among the top five remittance recipient countries.
Meanwhile, remittance flows to the Middle East and North Africa decreased for the second year in a row, primarily due to a significant decline in flows to Egypt.
After a notable increase in 2022, remittance flows to Europe and Central Asia also declined by 1.4%.
In 2023, remittances to low- and middle-income countries increased by an estimated 3.8%, amounting to $669 billion. Strong labour markets in developed nations and Gulf Cooperation Council (GCC) nations were essential in enabling migrants to send money home.
According to the research, there may be a chance for migrants’ real incomes to drop in 2024 as a result of low growth prospects and worldwide inflation.
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