Remittances – Statistics and Facts

As per the Remittances Stats, one in every ten people around the globe is directly associated with remittances. The U.S. is the largest remittance source country that witness outflow of $42 billion annually. Among the various regions of the world, the Latin America has the largest and fastest growing remittance flow. It received approx 40% of remittance sent to developing countries. In fact, the remittance to Latin America exceeds the foreign investment and development aid. The economy of the Latin America depends largely on the remittances flow. The rapid increase in Latin America is gradually slowing with more Latin American immigrants are adopting U.S. society and thus sending less money home.

Remittances - Statistics and Facts The Migrants who are earning into foreign locations remit on average 12.6 times a year. The average remit amount is in the range of $150/200/250 every time. These remittances are used by the family, friends or relatives in the home country for their daily expenses. These remittances make up to 10% of their household income. A quarter of remitters usually send money their earned money home first, prior to paying their own bills. The remittance rates have shown good growth in spite of downfall of U.S. economy.

Generally, the remittances increase at times of the slow economy of home country where it can be used as an effective anti-poverty tool. These remittances promote the economic growth, community development and increased investment in home country. Moreover, remittances can also lead to inflation and higher interest rates. As per the remittances data, nearly 46% of all Hispanics that are born outside US, send money to their home country. Nearly, 57% of immigrants from El Salvador send remittances and around 60% of U.S. remittance senders are male. Around 64% of people who are employed constitute unskilled labourers and 45% say they would go back to their home country.

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Facts Related to Remittances

The facts related to the remittances are mentioned below:

(1) As per the report submitted by the World Bank, almost US$250 billion was sent through remittance throughout the world in the year 2006. The amount of money sent via remittance has been increasing steadily with thirty percent growth every year

(2) The share of the global remittances sent to the developing nations rises from fifty seven percent in 1995 to seventy two percent in 2005. It was equivalent to an amount of $167 billion in the time period of ten years.

(3) India is the leading remittance receiver globally and accounts for the maximum remittance received every year. In the year 2006, $26.9 billion was remitted to India and it increased up to $55.06 billion in 2009. India is followed by China at second position with $22.52 billion in 2006 to $40.5 billion in 2008. These two are followed by Philippines ($17.3 billion); Mexico ($21.2 billion) and Poland.

Remittances (4) A large chunk of remittances from the US is directed to Asian countries including India ( 26 billion USD), Philippines (16 billion USD) and China (23 billion USD). In the year 2003.2004, five out of seven top remittance recipient countries belonged to Asia. The Asian countries were India, Philippines, China, Pakistan and Bangladesh. Non Asian countries in the top seven include Mexico and France.

(5) The Asian countries like India, China and non Asian such as Mexico and France accounts for a third of global remittances.

(6) The remittances make up a high share of GDP gross domestic product in only two countries including the Philippines and Serbia and Montenegro.

(7) In fact, approx ten percent of the population globally is involved directly with remittances.

(8) USA tops the list of countries that offers the largest amount of remittances, with $31 billion of remittance is sent every year from USA to other countries.

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