Bangladesh is likely to receive $16 billion in remittances in 2018, and this along with India are the only two South Asian country to have registered a double-digit growth in remittances, the World Bank said Saturday.
In Bangladesh, remittances are showing a brisk uptick in 2018 (17.9 percent), according to the latest edition of World Bank’s Migration and Development Brief.
India with a whooping $80 billion remittances retains the top slot. India is followed by China ($67 billion), Mexico and the Philippines ($34 billion each), Egypt ($26 billion), Nigeria ($25.1), Pakistan ($20.9), Ukraine ($16.5), Bangladesh ($15.9) and Vietnam ($15.9).
The Bank estimates that officially recorded remittances to developing countries will increase by 10.8 percent to reach $528 billion in 2018. This new record level follows robust growth of 7.8 percent in 2017. Global remittances, which include flows to high-income countries, are projected to grow by 10.3 percent to $689 billion.
According to the report, remittances to South Asia are projected to increase by 13.5 percent in 2018, a faster pace than the 5.7 percent growth seen in 2017.
The upsurge is driven by stronger economic conditions in high-income economies (particularly the United States) and an increase in oil prices up to October 2018, which had a positive impact on remittance outflows from some GCC countries (such as the United Arab Emirates, which reported 13 percent growth in outflows in the first half of 2018).
In India, remittances are projected to grow by 15.2 percent in 2018 to $79.5 billion. A flooding disaster in the southern Indian state of Kerala is likely to have boosted remittances, as migrants sent financial help to families back home.
In Pakistan, remittance growth is projected to remain moderate in 2018 (6.2 percent) due to significant declines in inflows from Saudi Arabia (the largest remittance source).
“In Bangladesh, remittances are showing a brisk uptick in 2018 (17.9 percent), and Sri Lanka is likely to witness remittance growth of 5.4 percent in 2018,” it said.
For 2019, it is projected that remittances to the region will slow to 4.3 percent due to a moderation of growth in high-income economies and slower migration to the GCC countries, the bank said.