Remittance flows to developing nations to reach $283 bn

Remittances from expatriates to developing countries is expected to reach $283 billion this year, though the outlook seems uncertain as the global financial turmoil is expected to dampen inflows in the coming months, a report says.

"We estimate that remittance flows to developing countries are likely to reach $283 billion in 2008 as compared to a revised $265 billion in 2007," World Bank said in its report.

According to new estimates, India, China and Mexico are likely to maintain their position as the top three recipients of remittances among developing countries.

The top-10 recipients list also includes Philippines ($18.7 billion), Poland ($11 billion), Nigeria ($10 billion), Romania ($9 billion), Egypt ($9.5 billion), Bangladesh ($8.9 billion) and Pakistan ($7.1 billion), the World Bank development prospects group said in its report.

 

The report titled 'Migration and Development Brief' said, while this translates into an increase of 6.7 per cent in nominal dollar terms, remittances as a share of GDP of the recipient countries will fall to 1.8 per cent in 2008 from two per cent in 2007.

The report further said after several years of strong growth, remittance flows to developing countries began to slow down significantly in the third quarter of 2008 in response to a deepening global financial crisis.

In 2009, the deceleration in remittances is likely to be sharper, indeed remittances may even register a relatively large decline in some corridors. Nevertheless, remittances are unlikely to fall as much as private flows and official aid to developing countries.