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Report On Global Remittances 2021 : World Bank

Report On Global Remittances: World Bank:

According to the latest edition of the World Bank’s Migration and Development Brief, despite Covid-19, remittance flows remained resilient in 2020, registering a smaller decline than previously projected.

Remittance Inflow of India:

  • India being at the top, received over USD 83 billion in remittances in 2020, a drop of just 0.2 percent from the previous year, despite a pandemic that devastated the world economy.
  • India’s remittances fell by just 0.2% in 2020, with much of the decline due to a 17% drop in remittances from the United Arab Emirates, which offset resilient flows from the United States and other host countries.
  • In 2019, India had received USD 83.3 billion in remittances.

Global Remittances:

  • China is second in terms of global remittances in 2020.
  • China received USD 59.5 billion in remittances in 2020.
  • India and China are followed by Mexico, the Philippines, Egypt, Pakistan , France and Bangladesh.

Remittance outflow :

  • Remittance outflow was the maximum from the United States (USD 68 billion), followed by UAE, Saudi Arabia, Switzerland, Germany, and China.

Reason for the Steady Flow of Remittances:

  • Fiscal stimulus that resulted in better-than-expected economic conditions in host countries.
  • Shift in flows from cash to digital and from informal to formal channels.
  • Cyclical movements in oil prices and currency exchange rates.

Remittance:

  • A remittance is money sent to another party, usually one in another country.
  • The sender is typically an immigrant and the recipient a relative back home.
  • Remittances represent one of the largest sources of income for people in low-income and developing nations. It often exceeds the amount of direct investment and official development assistance.
  • Remittances help families afford food, healthcare, and basic needs.
  • India is the world’s biggest recipient of remittances. Remittances bolster India’s foreign exchange reserves and help fund its current account deficit.

World Bank:

  • The Bretton Woods Conference held in 1944, created the International Bank for Reconstruction and Development (IBRD) along with the International Monetary Fund (IMF).
  • The IBRD later became the World Bank.
  • The World Bank Group is a unique global partnership of five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
  • Members:
    • It has 189 member countries.
    • India is also a member country.

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