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| 03 October, 2017

Global remittances to modestly recover after 2 years of decline

A man counts U.S dollars and Euros at a money exchange office in central Cairo, Egypt, December 27, 2016.

A man counts U.S dollars and Euros at a money exchange office in central Cairo, Egypt, December 27, 2016.

REUTERS/Mohamed Abd El Ghany

Remittances to low- and middle-income countries are on course to recover in 2017 after two consecutive years of decline, a World Bank report showed

WASHINGTON -- Remittances to low- and middle-income countries are on course to recover in 2017 after two consecutive years of decline, a World Bank report showed Tuesday.

In the latest edition of the World Bank's Migration and Development Brief, the Bank estimates that officially recorded remittances to developing countries are expected to grow by 4.8 percent, reaching USD 450 billion for 2017.

It added that global remittances, which include flows to high-income countries, are projected to grow by 3.9 percent to USD 596 billion.

"The recovery in remittance flows is driven by relatively stronger growth in the European Union, Russian Federation, and the United States," it said.

It affirmed that "as a result, those regions likely to see the strongest growth in remittance inflows this year are Sub-Saharan Africa, Europe and Central Asia, and Latin America and the Caribbean." According to the Brief, after two years of decline, remittances to the Middle East and North Africa region are expected to grow by 4.6 percent to USD 51 billion this year, "largely driven by strong flows to Egypt, the region's largest recipient, in response to the devaluation of the Egyptian pound." It noted that "the growth outlook is, however, dampened by lower growth in the GCC due to oil production cuts and fiscal consolidation," where remittances to the region will grow by 2.9 percent to USD 53 billion in 2018.

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It added that remittances growth to the South Asia region will be moderate at 1.1 percent to USD 112 billion this year, due to "continuing impact of lower oil prices and 'nationalization' polices leading to constrained labor market conditions in the GCC."

Meanwhile, it indicated that "in keeping with an improving global economy," remittances to low- and middle-income countries are expected to grow modestly by 3.5 percent in 2018, to USD 466 billion, while global remittances will grow by 3.4 percent to USD 616 billion in 2018.

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