According to the new data released by the World Bank, the global remittance flows have shown themselves to be more stronger than expected in this ongoing Covid-19 pandemic situation. This resilient remittance flow is mainly true for the inflow towards low and middle income countries.
According to the World Bank, the global remittances are expected to see a 2.4 percent decrement, leading it from $719 billion in 2019 to $702 billion in 2020. Out of the total remittance, $540 billion are expected to have flown down into the low and middle income countries , from $548 billion previously with a total 1.6 percent decrement.
The overall remittance inflow was found to be down however some countries successfully managed to increase it during the Covid-19 crises. These countries included Mexico being the third largest remittance receiver followed by Egypt, Pakistan and Bangladesh at fifth, sixth and eighth position respectively. The two developing countries including India and the Philippines went through some small loses in the previous year as compared to 2019 with 0.2 percent and 0.7 percent respectively.
Earlier this year, the Central Bank of the Philippines decided to put a remittance decrease all over the country down at 0.8 percent. Although the figures differed slightly yet still the uniformly coded data of World Bank made it possible to compare the remittances between the countries. This small decrement is hard to believe for a country being the fourth largest receiver for remittance. Over the last ten years, the inflow of remittance in Philippines has been showing an increase of three to almost nine percent, annually.
Not only the developing countries but even some of the well developed countries like France and Germany are receiving remittances. Not only this, but these two countries are in the top ten list of remittance recipients. However, inflow of remittance is not much importance for their economies. Less than one percent of the GDP was made with remittances in the two European Countries as well as China in the year 2020. While for the other countries in the top ten list, these numbers ranged from 3 percent to up to 10 percent with Pakistan being the highest share exhibiting country with 9.9 percent followed by Philippines with 9.6 percent.
The list of countries relying mostly on the remittance inflow included Tonga with 37.7 of total GDP followed by Somalia with 35.3 percent of the GDP as well as Lebanon with 32.9 percent of GDP according to the rankings released by World Bank.
Read next: Israel-Palestinian ongoing conflict causing a continuous rise in human death toll
According to the World Bank, the global remittances are expected to see a 2.4 percent decrement, leading it from $719 billion in 2019 to $702 billion in 2020. Out of the total remittance, $540 billion are expected to have flown down into the low and middle income countries , from $548 billion previously with a total 1.6 percent decrement.
The overall remittance inflow was found to be down however some countries successfully managed to increase it during the Covid-19 crises. These countries included Mexico being the third largest remittance receiver followed by Egypt, Pakistan and Bangladesh at fifth, sixth and eighth position respectively. The two developing countries including India and the Philippines went through some small loses in the previous year as compared to 2019 with 0.2 percent and 0.7 percent respectively.
Earlier this year, the Central Bank of the Philippines decided to put a remittance decrease all over the country down at 0.8 percent. Although the figures differed slightly yet still the uniformly coded data of World Bank made it possible to compare the remittances between the countries. This small decrement is hard to believe for a country being the fourth largest receiver for remittance. Over the last ten years, the inflow of remittance in Philippines has been showing an increase of three to almost nine percent, annually.
Not only the developing countries but even some of the well developed countries like France and Germany are receiving remittances. Not only this, but these two countries are in the top ten list of remittance recipients. However, inflow of remittance is not much importance for their economies. Less than one percent of the GDP was made with remittances in the two European Countries as well as China in the year 2020. While for the other countries in the top ten list, these numbers ranged from 3 percent to up to 10 percent with Pakistan being the highest share exhibiting country with 9.9 percent followed by Philippines with 9.6 percent.
The list of countries relying mostly on the remittance inflow included Tonga with 37.7 of total GDP followed by Somalia with 35.3 percent of the GDP as well as Lebanon with 32.9 percent of GDP according to the rankings released by World Bank.
Read next: Israel-Palestinian ongoing conflict causing a continuous rise in human death toll
