Remittances to developing world hit $400bn in 2012

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

The amount of cash remitted to bank accounts in the developing world rose by 5.3 percent to an estimated $401bn in 2012, according to a report by the World Bank.

The bank’s latest Migration and Development Brief said that money remitted to developing countries is expected to grow by an annual average of 8.8 percent over the next three years, reaching $515bn by 2015.

India topped the list of countries that saw the biggest inflows during the year at $69bn, followed by China ($60bn), the Philippines ($24bn) and Mexico ($23bn). Other big recipients included Egypt, Pakistan, Bangladesh and Lebanon.

“The role of remittances in helping lift people out of poverty has always been known, but there is also abundant evidence that migration and remittances are helping countries achieve progress... such as access to education, safe water, sanitation and healthcare,” commented Hans Timmer, director of the World’s Bank’s Development Prospects group.

Remittance flows to South Asia rose by 12.8 percent to $109bn in 2012, after averaging 13.8 percent over the prior two years. India received $69bn during the year, while flows to Bangladesh, Pakistan and Nepal also rose. Cash remitted back to the region is expected to hit $140bn in 2015, the World Bank report said.

Inflows to the Middle East and North Africa accounted for $49bn in 2012, up 14.3 percent from the previous year.

Egypt made up 40 percent of this total, having seen a six-fold rise over the past eight years, due to its high number of workers in oil-rich countries in the region.

Remittance flows to the Middle East and North Africa are expected to grow by 5 percent to 6 percent, hitting $58bn to 2015.

In terms of a percentage of GDP, Tajikistan came out top in the World Bank report, with 47 percent comprised of remittances.

More than a fifth of Nepal’s GDP (22 percent), is derived from money remitted back to the South Asian country.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew