Against a backdrop of tepid global growth, remittance flows to low and middle income countries seem to have entered a “new normal” of slow growth
| October 8, 2016
Remittances to the South Asian region are expected to decline by 2.3 percent in 2016, following a 1.6 percent decline in 2015. Remittances from the GCC (Gulf Cooperation Council) countries continued to decline due to lower oil prices and labour market ‘nationalization’ policies in Saudi Arabia, said a World Bank report “Trends in Remittances, 2016: A New Normal of Slow Growth”
“In 2016, remittance flows are expected to decline by 5 percent in India and 3.5 percent in Bangladesh, whereas they are expected to grow by 5.1 percent in Pakistan and 1.6 percent in Sri Lanka,” the report said.
Against a backdrop of tepid global growth, remittance flows to low and middle income countries (LMICs) seem to have entered a “new normal” of slow growth. In 2016, remittance flows to LMICs are projected to reach $442 billion, marking an increase of 0.8 percent over 2015. The modest recovery in 2016 is largely driven by the increase in remittance flows to Latin America and the Caribbean on the back of a stronger economy in the United States; by contrast remittance flows to all other developing regions either declined or recorded a deceleration in growth.
The top recipients of remittances are, in nominal US dollar terms, India, China, the Philippines, Mexico and Pakistan and, in terms of remittances as a share of GDP, Nepal, Liberia, Tajikistan, Kyrgyz Republic and Haiti.
The report went on to say that besides weak economic growth in remittance-source countries, cyclical low oil prices have dampened the growth of remittance flows from Russia and the GCC countries. More worrisome are structural factors such as de-risking by commercial banks, the labor market ‘nationalization’ policies in some GCC countries (that discourage demand for migrant workers) and exchange controls in many countries faced with adverse balance of payments and falling international reserves.
Read the complete report here
More than three percent of medicines in India are ‘Not of Standard Quality’ (NSQ) and 0.0245 percent spurious, reveals a survey report on drugs quality by the ministry of health. The survey carried out by National Institute of Biologicals (NIB), Noida found that out of the
Bharat electronics limited (BEL) has launched a new weapon control system — Remote Controlled Weapon Station (RCWS) / Air Defence Weapon Station (ADWS) for 12.7 mm gun of MBT Arjun Mk II battle tank during recently concluded Aero India 2017 in Bengaluru. The new weapon control system
The Sasikala camp is in talks with the O Panneerselvam (OPS) faction and they are trying to win them over, says an AIADMK insider. Negotiation have started between the main AIADMK, which is with Sasikala, and the splinter group that is supporting former chief minister OPS. The party insider
On October 1 last year, Mehtab Alam Ansari, 30, who worked as a tailor in Delhi, had arrived in his village, Chepa Khurd in Barkagaon tehsil of Harazibagh district, to celebrate Eid with his family. That morning, he was nearing Dadi Kalan, a neighbouring village, to meet an acquaintance when he hea
State run enterprise oil and natural gas corporation limited (ONGC) has decided to invest Rs 7,327 crore to develop five projects to produce oil and gas. The decision was taken in its 290th board meeting held on February 23. The projects include development of R-Series fields, incl
The civic election results could well have long term implications in Maharashtra’s politics, with the Bharatiya Janata Party (BJP) doing dramatically well and the Shiv Sena failing to get a simple majority. The Shiv Sena won 84 seats, while the BJP bagged 82 seats. Th