Migration and Development Brief Current Affairs - 2019
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According to World Bank’s Migration and Development Brief, India will retain its position as world’s top recipient of remittances in 2018, receiving a total remittance of $80 billion from its diaspora. India is followed by China ($67 billion), Mexico and hilippines ($34 billion each) and Egypt ($26 billion).
Remittance: It is transfer of money by foreign worker to individual or family in their home country. It competes with international aid as one of the largest financial inflows to developing countries. It has direct impact on alleviating poverty for many households especially in developing and low- and middle-income countries.
Key Highlights Migration and Development Brief
Global remittances: Including flows to high-income countries, are projected to grow by 10.3% to $689 billion. However it is projected to moderate. They are expected to grow 3.7% to $715 billion in 2019.
Developing countries: Remittances to developing countries will increase by 10.8% to reach $528 billion in 2018, against a 7.8% growth in 2017.
Low- and middle-income countries: Future remittances to these countries are expected to grow moderately by 4% to $549 billion in 2019.
India: Over the last three years, India registered asignificant flow of remittances, from $62.7 billion in 2016 to $65.3 billion 2017. In 2017, remittances constituted 2.7% of India’s GDP.
South Asia: Remittances are projected to increase by 13.5% to $132 billion in 2018, a stronger pace than 5.7% growth seen in 2017. The upsurge is driven by stronger economic conditions in advanced economies, particularly US and increase in oil prices having positive impact on outflows from some Gulf Cooperation Council (GCC) countries such as UAE, which reported a 13% growth in outflows for first half of 2018.
Bangladesh and Pakistan have experienced strong upticks of 17.9% and 6.2% in 2018, respectively. For 2019, it is projected that remittances growth for region will slow to 4.3% due to moderation of growth in advanced economies, lower migration to GCC and the benefits from the oil price spurt dissipating. GCC is regional inter-governmental political and economic bloc of six oil rich middle-east countries viz. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.
According to recently released Migration and Development Brief by World Bank, India has retained top position as recipient of remittances with about $69 billion in 2017. India was followed by China ($64 billion), Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion) and Egypt ($20 billion).
Key Highlights of Migration and Development Brief
Global remittances: It grew 7% to US $613 billion in 2017, from US $573 billion in 2016. Global remittances are expected to grow 4.6% to $642 billion in 2018. It include flows to high-income countries. The stronger-than-expected recovery in remittances was driven by growth in Europe, Russia and US.
The rebound in global remittances was due to higher oil prices and strengthening of Euro and Ruble. The upsurge is likely to continue into 2018 on back of stronger economic conditions in advanced economies (particularly US) and increase in oil prices that may have positive impact on GCC (Gulf Cooperation Council) countries.
Low-and middle-income countries: Remittances received by these countries in 2017 has reached US $466 billion in 2017. This was an increase of 8.5% over US $429 billion in 2016. India received $69 billion remittances in 2017 as against $62.7 billion in 2016. It had picked up sharply by 9.9%, reversing previous year’s dip (8.9% in 2016), but was still short of $70.4 billion received in 2014.
Remittances to South Asia: It grew a moderate 5.8% to US $117 billion in 2017 and it will likely grow modestly by 2.5% to $120 billion in 2018. Flows to Pakistan (received US $20 billion) and Bangladesh (US $13 billion) were both largely flat in 2017, while Sri Lanka saw small decline (-0.9%).
Global average cost: The of sending $200 was 7.1% in Q1 of 2018, more than twice as high as Sustainable Development Goal (SDG) target of 3%. Sub-Saharan Africa remained most expensive place to send money to, where the average cost is 9.4%.
Transit migration: The transit migrants-who only stay temporarily in transit country, are usually not able to send money home. Migration may help migrants to escape poverty or persecution, but many also become vulnerable to exploitation by human smugglers during transit. Host communities in transit countries may find their own poor population competing with new-comers for low-skill jobs.