According to the World Bank report, remittances to India were set to rise 12% in 2022 to a whopping $100 billion, accounting for a bulk of $163 billion in payments sent to all South Asian nations during the year
A World Bank report on November 30 said that it was for the first time that a single country, India, was set to receive over $100 billion in yearly remittances.
In fact, India will maintain its lead as the top recipient of remittances from expat workers in 2022 as always. According to the World Bank report, remittances to India were set to rise 12% in 2022 to a whopping $100 billion, accounting for a bulk of $163 billion in payments sent to all South Asian nations during the year.
Overall global remittances to low and middle-income countries (LMICs) grew just 5% this year as compared to a 10.2% rise in 2021. Such payments are a vital source of household income in poor and middle-income countries. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households, the World Bank said.
Factors that impacted the flow of funds during the year include the reopening of host economies after Covid, inflation, dollar strength, and foreign exchange shortage in some countries
Remittances to India were enhanced by wage hikes and a strong labour market in the United States and other OECD countries. In the Gulf Cooperation Council destination countries, governments ensured low inflation through direct support measures that protected migrants’ ability to remit. Sending $200 to the region cost 4.1% on average in the second quarter of 2022, down from 4.3% a year ago.
“Migrants help to ease tight labor markets in host countries while supporting their families through remittances. Inclusive social protection policies have helped workers weather the income and employment uncertainties created by the COVID-19 pandemic. Such policies have global impacts through remittances and must be continued,” said Michal Rutkowski, World Bank Global Director for Social Protection and Jobs.
Factors that impacted the flow of funds during the year include the reopening of host economies after Covid, inflation, dollar strength, and foreign exchange shortage in some countries.
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