The following is the Global migration and development briefing 2021 From World Bank recommended by recordtrend.com. And this article belongs to the classification: global economy , research report.
According to the latest migration and development briefing released by the world bank, it is expected that the inflow of remittances from low-income and middle-income countries will grow strongly by 7.3% to US $589 billion in 2021. The momentum of the resumption of growth is stronger than earlier estimates, continuing the resilience shown by the fact that the remittance rate in 2020 only declined by 1.7% as a result of COVID-19’s global recession.
Remittance growth was strong in most regions. Remittance flows in Latin America and the Caribbean increased by 21.6%, in the Middle East and North Africa by 9.7%, in South Asia by 8%, in sub Saharan Africa by 6.2%, and in Europe and Central Asia by 5.3%. Remittances from East Asia and the Pacific fell by 4%, although excluding China, remittances from the region increased by 1.4%.
According to the world bank’s global remittance price database, the cost of cross-border remittance of $200 is still too high. The average amount of remittance in the first quarter of 2021 is 6.4%, which is more than twice the 3% set by the 2030 sustainable development goal. The cost of remittances to sub Saharan Africa is the highest (8%) and the cost of remittances to South Asia is the lowest (4.6%). The data show that the cost of remittance through banks is often higher than that through digital channels or through remittance service agencies providing cash services.
It is expected that the remittance volume will continue to grow by 2.6% in 2022, which is consistent with the global macroeconomic forecast. COVID-19’s renewed and resumed travel restrictions constitute the biggest downside risk for global growth, employment and China’s remittance inflows. As the economy recovers, reducing the scale of fiscal stimulus and employment support programs may also curb remittance flows.
East Asia Pacific Region
Officially recorded remittance inflows in East Asia and the Pacific are expected to decline by 4% to $131 billion in 2021. With the exception of China, remittances in the region increased by 1.4% in 2021 and are expected to increase by 3.3% in 2022. In terms of GDP, the largest remittance receiving countries in the region are smaller economies, such as Tonga (43.9%), Samoa (21.1%) and Marshall Islands (12.8%). Remittance cost: the average cost of remitting $200 to the region in the first quarter of 2021 decreased slightly to 6.7% in the same period, down from 7.1 in the same period last year. The average cost of remitting money to the Philippines from the five lowest cost remittance corridors in the region is 2.7%; The five corridors with the highest cost (the remittance cost from South Africa to China is an abnormal value, not included) average 15%.
After a decline of 8.6% in 2020, due to the enhanced economic activity of the EU and the soaring energy prices, the inflow of remittances in Europe and Central Asia is expected to increase by 5.3% to US $67 billion in 2021. Remittances are expected to grow by 3.8% in 2022. Remittances are currently the largest source of external funds in the region. In 2020 and 2021, the inflow of remittances exceeded or was equivalent to the sum of foreign direct investment, portfolio investment and official development assistance. Remittances from the Kyrgyz Republic and Tajikistan account for more than 25 per cent of their GDP. Remittance cost: the average cost of remitting US $200 to the region in the first quarter of 2021 increased slightly to 6.6% from 6.5% in the same period last year, mainly reflecting the sharp increase in the cost of the Turkey Bulgaria remittance corridor. Russia is one of the countries with the lowest remittance cost in the world, and the cost has decreased from 1.8% to 1%.
Latin America and the Caribbean
It is estimated that goods flowing into Latin America and the Caribbean will reach a new high of US $126 billion in 2021, a significant increase of 21.6% over 2020. Mexico is the largest recipient of remittances in the region, accounting for 42 per cent of the total remittances in the region ($52.7 billion). For several smaller economies, these remittances account for more than 20 per cent of GDP: El Salvador (26.2 per cent), Honduras (26.6 per cent), Jamaica (23.6 per cent) and Guatemala (18 per cent). The adverse effects of COVID-19 and hurricanes increase the inflow of remittances in Mexico and Central America. Other key drivers include the level of employment in host countries, particularly the United States, and the resumption of financial and social assistance programmes. The increase in the number of transit migrants from Mexico and other countries and the increase in overseas remittances they receive to cover the cost of living and travel seem to be an important factor in supporting strong growth. Remittances are expected to grow by 4.4% in 2022, mainly due to the weakening outlook for U.S. economic growth. Remittance expenses: the average cost of remitting $200 to the region in the first quarter of 2021 was 5.5%, down from 6% in the same period last year. Mexico remains the lowest cost remitting country in the G20, with an average cost of 3.7%. However, remittances in smaller remittance corridors are expensive.
Middle East and North Africa
Under the positive impact of the recovery of economic growth in the EU host countries (especially France and Spain) and the rise of global oil prices in the GCC countries, remittances from developing countries in central and northeast Africa are expected to increase by 9.7% to US $62 billion in 2021. Capital inflows from Egypt (up 12.6 per cent to $33 billion) and Morocco (up 25 per cent to $9.3 billion) increased significantly, and both countries played an important role in producing favorable results. Driven by economic growth in the eurozone, remittance income in the Maghreb (Algeria, Morocco and Tunisia) increased by 15.2%. For developing countries in central and North East Africa, remittances have long been the largest source of external financing for official development assistance, foreign direct investment and debt securities investment. Due to the risks brought by COVID-19, the growth rate of remittances is expected to fall to 3.6% by 2022. Remittance costs: in the first quarter of 2021, the cost of remitting $200 to central and northeast Africa decreased to 6.3% from 7% in the same period last year.
South Asia region
By 2021, remittance inflows to South Asia will increase by about 8% to $159 billion. The rise in oil prices has contributed to economic recovery and increased remittances from GCC Member States, which employ more than half of South Asian immigrants. The US economic recovery and stimulus package also contributed to the growth of remittances. Remittances from India will increase by 4.6% to $87 billion in 2021. In 2021, remittances from Pakistan reached a record level, increasing by 26% to US $33 billion.
Sub Saharan Africa
In 2021, remittance inflows in sub Saharan Africa resumed growth, increasing by 6.2% to US $45 billion. Nigeria, the largest recipient of remittances in the region, experienced a warm and rebound in remittance inflows, partly due to the expanded influence of policies to encourage remittances through the banking system. Countries with a large proportion of remittance inflows in GDP include Gambia (33.8%), Lesotho (23.5%), Cape Verde (15.6%) and Comoros (12.3%). Due to the sustained economic recovery in Europe and the United States, remittance inflows are expected to increase by 5.5% by 2022. Remittance fee: the average fee in the first quarter of 2021 was 8%, down from 8.9% in the same period last year.
If you want to get the full report, you can contact us by leaving us the comment. If you think the information here might be helpful to others, please actively share it. If you want others to see your attitude towards this report, please actively comment and discuss it. Please stay tuned to us, we will keep updating as much as possible to record future development trends.
RecordTrend.com is a website that focuses on future technologies, markets and user trends. We are responsible for collecting the latest research data, authority data, industry research and analysis reports. We are committed to becoming a data and report sharing platform for professionals and decision makers. We look forward to working with you to record the development trends of today’s economy, technology, industrial chain and business model.Welcome to follow, comment and bookmark us, and hope to share the future with you, and look forward to your success with our help.
-
-
-
-
