{"id":248415,"date":"2023-06-17T19:44:32","date_gmt":"2023-06-17T14:14:32","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=248415"},"modified":"2023-06-17T19:44:32","modified_gmt":"2023-06-17T14:14:32","slug":"why-remittance-inflows-growth-could-slow-to-just-0-2-in-2023","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/why-remittance-inflows-growth-could-slow-to-just-0-2-in-2023\/","title":{"rendered":"Why remittance inflows growth could slow to just 0.2% in 2023"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cWhy remittance inflows growth could slow to just 0.2% in 2023\u201d <\/b>published in <\/span>Indian Express <\/b>on 17th June 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

According to the World Bank\u2019s latest Migration and Development Brief, India is expected to post a growth of just 0.2% in remittance inflows in 2023.<\/span><\/p>\n

Note<\/b>: India had registered a growth of more than 24% to reach a record-high $111 billion in remittances in 2022.<\/span><\/em><\/p>\n

Why are remittances important?<\/b><\/h2>\n

In the aftermath of the Covid-19 pandemic, remittances are being viewed as a critical financial inflow.<\/span><\/p>\n

It is an important source of foreign exchange for several countries including those in South Asia.<\/span><\/p>\n

Remittances are highly complementary to government cash transfers and essential to households during times of need.<\/span><\/p>\n

In India, the largest global recipient, remittances represented only 3.3% of GDP in 2022.<\/span><\/p>\n

Note:<\/b> Remittance inflows represented very large shares of GDP in countries such as Tajikistan (51% of GDP), Tonga (44%), Lebanon (35%), Samoa (34%), and the Kyrgyz Republic (31%).<\/span><\/em><\/p>\n

What are the top sources of remittances for India?<\/b><\/h2>\n

Almost 36% of India\u2019s remittances are from the high-skilled and largely high-tech Indian migrants in three high-income destinations \u2014 the US, the United Kingdom, and Singapore.<\/span><\/p>\n

Remittance inflows from the GCC countries account for about 28% of India\u2019s total remittance inflows.<\/span><\/p>\n

Why are remittances expected to grow at a slower pace in 2023?<\/b><\/h2>\n

S<\/b>low growth in OECD economies<\/b>: Slower growth in OECD economies \u2014 especially in the high-tech sector in the United States has affected the demand for information technology (IT) workers.<\/span><\/p>\n

Lower demand for migrants in the Gulf Cooperation Council (GCC) <\/b>countries due to <\/span>declining oil prices. This is expected to slow the growth of the Gulf Region from 5.3% in 2022 to 3% in 2023.<\/span><\/p>\n

High Base effect: <\/b>In 2022, India registered a growth of more than 24% to reach a record-high $111 billion in remittances in 2022. The high base in 2022 will significantly affect the growth rate of remittances for India in 2023.<\/span><\/p>\n

What was the trend for remittances in 2022?<\/b><\/h2>\n

In 2022, India posted more than 24% growth in its inward remittances to reach $111 billion, higher than the World Bank\u2019s earlier estimate of $100 billion. This represented 63% of South Asia\u2019s remittance flows, which grew by more than 12% in 2022 to reach $176 billion.<\/span><\/p>\n

The top five recipient countries for remittances in 2022 were India ($111 billion), followed by Mexico ($61 billion), China ($51 billion), the Philippines ($38 billion), and Pakistan ($30 billion).<\/span><\/p>\n

Remittances were supported by the 1)<\/strong> oil surge in member countries of the GCC, which increased migrants\u2019 incomes, 2)<\/strong> large money transfers from the Russian Federation to countries in Central Asia and 3) <\/strong>a strong labour market in the US and the OECD countries.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cWhy remittance inflows growth could slow to just 0.2% in 2023\u201d published in Indian Express on 17th June 2023 What is the News? According to the World Bank\u2019s latest Migration and Development Brief, India is expected to post a growth of just 0.2% in remittance inflows in… Continue reading Why remittance inflows growth could slow to just 0.2% in 2023<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-248415","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=248415"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248415\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=248415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=248415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=248415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}