India tops chart with USD 70-billion remittance in 2014, shows World Bank report

The World Bank has said India continues to be the leading country in remittances pulling in US $70 billion from its global migrant workforce in 2014.

World Bank's study of remittance, the money that workers and professionals working in foreign lands send back to their native countries, attributed this mainly to weak economic growth in Europe, deterioration of the Russian economy and the depreciation of the euro and ruble.

"Total remittances in 2014 reached US $583 billion. This is more than double the ODA in the world. India received US $70 billion, China US $64 billion, the Philippines US $28 billion. With new thinking these mega flows can be leveraged to finance development and infrastructure projects," said Kaushik Basu, World Bank Chief Economist and Senior Vice President.

"Israel and India have shown how macro liquidity crises can be managed by tapping into the wealth of diaspora communities. Mexican migrants have boosted the construction sector. Tajikistan manages to nearly double its consumption by using remittance money. Migrants and remittances are clearly major players in today's global economy," Basu said.

United States, Saudi Arabia, Germany, Russia and the United Arab Emirates (UAE) remained the top five migrant destination countries and apart from India, China, Philippines, Mexico and Nigeria are the top five remittance recipient countries, in terms of value of remittances, the report said.

Remittances to the developing world are expected to reach US $440 billion in 2015, an increase of 0.9 per cent over the previous year. Global remittances, including those to high income countries, are projected to grow by 0.4 per cent to US $586 billion.

In line with the expected global economic recovery in 2016, the global flows of remittances are expected to accelerate by 4.1 per cent next year, to reach an estimated US $10 billion, rising to US $636 billion in 2017.

Remittance flows to developing countries are expected to recover in 2016 to reach US $459 billion, rising to US $479 billion in 2017, the World Bank said.

The global average cost of sending US $200 held steady at 8 per cent of the value of the transaction, as of the last quarter of 2014.

Despite its potential to lower costs, the use of mobile technology in cross-border transactions remains limited, due to the regulatory burden related to combating money laundering and terrorism financing, the report said.

(PTI)