From All Corners Of The World: How Remittances Boost Developing Economies
Close to 258 million people are living outside their home countries and are directly supporting an estimated 800 million people in developing economies, as per The World Economic Forum. The migrant workforce, including NRIs, living across the globe sends money to their loved ones for a variety of reasons ranging from investing in real estate and stocks to helping boost their family’s household income.
People living abroad adjust to life in the new country, acquire new skills and contribute in significant ways to their families and their communities back home. They truly deserve to be recognized on June 16, a day designated by the United Nations as the International Day Of Family Remittances (or IDFR).
Here are three facts that demonstrate how people in developed nations are having a powerful financial impact on their home countries’ economies and their families’ wellbeing:
In 2017, the migrant workforce sent an estimated $466 billion1 to their families in developing (also known as low- and middle-income) countries. As per the World Bank, remittances from abroad prove to be much more impactful than international development aid. Remittances are set to go up to $485 billion1 in 2018 and to $6 trillion2 by 2030.
In fact, these private financial flows from abroad contribute to the Asia and Pacific region more than 10 times the net official development assistance (or ODA), which is a measurement of international aid. Globally, about 40 percent2 of total remittances is sent to rural areas. Additionally, funds sent to Asia and the Pacific go primarily to countries that have a majority rural population.
Latin America and Caribbean received record-high remittances of almost $80 billion1 in 2017. Primary factors for this are stronger growth in the U.S. and tighter immigration rules, according to the World Bank.
Remittances lift families out of poverty, enhance health conditions, boost education opportunities for children, stimulate the entrepreneurship ecosystem, and reduce inequality, according to the World Economic Forum. One out of every 102 people (senders and receivers) in Asia and the Pacific is directly affected by remittances. In fact, Indians are sending more money back home. In 2017, India received $69 billion1 in remittances, higher than any other nation. This is higher compared to the World Bank’s earlier estimate of $65 billion. India, not surprisingly, has the highest number of residents living abroad; an estimated 17 million3.
Today, thanks to online money transfer agencies and banks, it’s become extremely easy for Indians to remit money home. They are convenient, fast and secure methods of transfer. You can use YES Bank’s online money transfer facility YES Remit, through which one can easily transfer money to any Savings bank account in India at ZERO Fees. It has also launched a special offer of 25 paisa extra on all transactions through YES Remit for a limited time period. So, when you’re remitting money home evaluate your options and choose the service that best fits your needs. Your loved ones back home will thank you.
World Bank Group’s April 2018 Migration and Development Brief 29
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