Indian expats to send $100 billion home in 2022: World Bank
Photo : IANS
It is for the first time that any single county will receive $100 billion in a year, said World Bank.
Overall global remittances to low and middle-income countries (LMICs) grew just 5% this year as compared to a 10.2% rise in 2021. Such payments are a vital source of household income in poor and middle-income countries. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households, the World Bank said.
Remittances to India were enhanced by wage hikes and a strong labor market in the United States and other OECD countries. In the Gulf Cooperation Council destination countries, governments ensured low inflation through direct support measures that protected migrants’ ability to remit. Sending $200 to the region cost 4.1% on average in the second quarter of 2022, down from 4.3% a year ago.
“Migrants help to ease tight labor markets in host countries while supporting their families through remittances. Inclusive social protection policies have helped workers weather the income and employment uncertainties created by the COVID-19 pandemic. Such policies have global impacts through remittances and must be continued,” said Michal Rutkowski, World Bank Global Director for Social Protection and Jobs.
Factors that impacted the flow of funds during the year include the reopening of host economies after Covid, inflation, dollar strength, and foreign exchange shortage in some countries.
The World Bank also warned that climate-driven migration will worsen livelihoods.
