I was inspired to write this post after seeing these charts. I tried to find some good information online, but all I could find was stuff about cryptocurrencies. If anyone knows of any quality resources on this topic, please share them with us.
Remittances to LMICs Overtake FDI for First Time
Remittances overtook foreign direct investment in low- and middle-income countries for the first time in 2022. This is according to World Bank data, which is also published in the International Organization for Migration’s (IOM) 2024 World Migration Report, released on Tuesday. International remittances are defined as money sent from workers living abroad to their home countries.The writers of the IOM report highlight that the World Bank’s global data on international remittances does not take into account unrecorded flows through formal or informal channels. This means the data provided is likely below the actual figures.
India Leads Global Inbound Remittances
It is also the first country ever to have passed the $100 billion mark for inbound remittances. India was trailed some way behind by Mexico ($61.1 billion), which had toppled China ($51 billion) from the second position in 2021. The majority of the inflows for France and Germany, which appear in rank 5 and 10, respectively, are not household transfers but “relate to salaries of cross-border workers who work in Switzerland while residing in France or Germany”, according to the report.In terms of the top sources of international remittances, the United States ($79.15 billion in 2022), Saudi Arabia ($39.35 billion), Switzerland ($31.91 billion), Germany ($25.60 billion) and China ($18.26 billion) are the biggest senders. The UAE’s data was not published this year by the World Bank but would usually also appear in the top 10 list.The writers of the report highlight that the World Bank’s global data on international remittances does not take into account unrecorded flows through formal or informal channels. This means the data provided is likely below the actual figures.