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India leading recipient of remittances in 2023: World Bank
High employment growth in Europe and a historically tight labor market in the United States have contributed to an increase in remittances according to the bank
Representative Image / Unsplash
India is the leading remittance recipient country in 2023, according to World Bank data. The bank’s Migration and Development Brief notes that India received $125 billion in the current year.
With $111 billion in remittances received in 2022, India remained the top recipient, a position maintained by the Indian diaspora, which greatly contributes to the country's economy.
The United States continued to be the largest source of remittances worldwide the Bank stated. Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion) were among the top five leading recipients of remittances around the world.
Remittance flows to South Asia are estimated to have grown 7.2 percent in 2023 to reach $189 billion, tapering off from the over 12 percent increase in 2022. The increase is attributable entirely to remittance flows to India, which are expected to beat previous forecasts by $14 billion and reach $125 billion in 2023, the Bank said in a news release.
According to the report, high employment growth in Europe reflecting extensive leveraging of worker retention programs, a historically tight labor market in the United States, and a dampening of inflation in high-income countries are the key drivers of remittance growth in 2023.
Dilip Ratha, lead economist and lead author of the report said, “Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing.” Cash flows to low- and middle-income countries (LMICs) grew by 3.8 percent in 2023, falling slightly from the high gains of the previous two years. This could be atrributed to global inflation and low growth prospects, which are leading to a decrease in the income of migrants.
“During crises, migrants have weathered risks and shown resilience to support families back home. But high inflation and subdued global growth is affecting how much money they can send,” said Iffath Sharif, Global Director of the Social Protection and Jobs Global Practice at the World Bank. “Labor markets and social protection policies in host countries should be inclusive of migrants, whose remittances serve as a vital lifeline for developing countries.”
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