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
Bharat Heavy Electricals Limited (BHEL), a Maharatna PSU, has successfully commissioned 250 MW unit based on eco-friendly circulating fluidized bed combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel. The 250 MW lignite
The Law Commission which had examined the issues of right to rejection and the right to recall, has not recommended for the same, the Lok Sabha was informed. Union minister PP Chaudhary said that the Law Commission of India was requested in January, 2013,
HCL founder Shiv Nadar tops the Hurun India Philanthropy list with Rs 630 crores donation towards education sector. Infosys co-founder Kris Gopalakrishnan and his wife Sudha Gopalakrishnan came in second with a donation of Rs 313 crores primarily towards healthcare, social development and education.
Keel of the first Coast Guard Offshore Patrol Vessel (CGOPV) of the new 5 CGOPVs project for the Indian Coast Guard was laid at Goa Shipyard Ltd (GSL) recently by ADG K Natarajan, PTM, TM Coast Guard Commander (Western Seaboard), in the presence of RAdm (Retd) Shekhar Mital, NM Chairman and Managing Dire
A pilot project of Digital Village (DigiGaon) is to be implemented in 1050 Gram Panchayats (GPs) spread across 30 States/UTs, the Lok Sabha was informed. Union minister PP Chaudhary said that the approved outlay for implementation of the project for finan
The railway ministry is examining the possibility of revival of the Ring Railway in Delhi, union minister Rajen Gohain told the Lok Sabha. The minister said that Delhi Ring Railway cannot be an alternative to the Delhi Metro. At best, it can supplement th