India is likely to maintain its place as the top remittances receiving nation, with its Diaspora set to pump in a whopping USD 65 billion in the year 2017, the World Bank said today.
Ahead of the annual summit of the International Monetary Fund (IMF) and the World Bank, a report published by the global lender said that remittances, which include flows to high-income countries, are projected to grow by 3.9% to USD 596 billion.
The other top 5 remittances receiving countries after India are China (USD 61 billion), Philippines (USD 33 billion), Mexico (USD 31 billion), and Nigeria (USD 22 billion).
However, as a share of GDP (gross domestic product) for 2017, the top 5 recipients are smaller countries- Tajikistan, Nepal, Kyrgyz Republic, Haiti and Liberia.
The bank said that the remittances increase to the South Asia region, will be moderate at 1.1% to USD 112 billion this year, due to systematic impact of lower oil prices and 'nationalisation' polices leading to controlled labor market situation in the Gulf Cooperation Council (GCC) countries.
The report also pointed out that the remittances the world’s largest remittance recipient country India will grow by 4.2% in 2017 to USD 65 billion, following a decline of 9% in 2016.
In 2016, India received remittances of USD 62.7 billion.
Highlights of Report:
• Remittances to Pakistan are likely to remain flat this year, while Bangladesh, Sri Lanka, and Nepal will see a decline.
• Remittances to the region will grow by a weak 2.6% USD 114 billion in 2018.
• However, India’s remittances is expected to grow at 2.5% in 2018.
• The economic deceleration in the GCC has badly impacted migrant worker flows from the South Asia Region.
• Authorised migrant workers in Saudi Arabia fell from 522,750 in 2015 to 462,598 in 2016; those in the United Arab Emirates declined from 326,986 in 2015 to 295,647 in 2016 for Pakistan.
• The number of Indian workers migrating to Saudi Arabia dropped from 306,000 in 2015 to 162,000 in 2016; those going to the United Arab Emirates decreased from 225,000 in 2015 to 159,000 in 2016.
• Total Indian worker outflows fell from 781,000 in 2015 to 506,000 in 2016, the bank said.