The World Bank said on Wednesday that remittances from expatriates to their low- and middle-income countries increased by about 5% to approximately $626 billion in 2022, representing about half of the increase recorded last year, and that the increase is expected to slow further to about 2% this year. next.
This increase comes despite the adverse developments witnessed in 2022 at the global level.
Remittances are a vital source of income for families in low- and middle-income countries, helping to reduce poverty and build resilience, as well as improving school enrollment rates for children.
The World Bank said in its latest statement on migration and development that officially registered remittances increased in 2022 with the reopening of host economies and increased employment amid the receding of the Corona pandemic, but the rise in prices negatively affected the real income of expatriates.
The report said the forecast for a strong growth rate for 2022 was clear given that it came after a 10.2 percent increase in 2021. Global remittance flows, including to advanced economies, are expected to reach $794 billion in 2022, according to the report.
According to the bank, the appreciation of the Russian ruble after the start of the war in Ukraine was reflected in the increase in the value of remittances out of Russia to Central Asia, when calculated in dollars, while the weakness of the euro reduced the value of remittances to North Africa and elsewhere.
He said remittance growth is expected to decline further in 2023 as GDP growth continues to slow in high-income countries.
“Downside risks remain significant, including a further deterioration in the war in Ukraine, volatility in oil prices and currency exchange rates, and a deeper-than-expected downturn in major high-income countries,” the report said.
He added that India is expected to be at the top of the top five countries receiving remittances in 2022 with a new record of $100 billion, followed by Mexico with $60 billion, then China, the Philippines and Egypt.
Kingdom + Archyde.com