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
India is the fifth largest producer of e-waste in the world and has discarded approximately 18 lakh metric tonnes of e-waste in 2016, which is 12 percent of the global e-waste, according to a United Nations University study, ‘The Global E-Waste Monitor 2017’. In fact by 2020, India’s e-wa
Does AAP continue to suffer from political immaturity?
There`s a popular folktale shaped by the tongues of the bards and storytellers of Rajasthan about the folly of Rajputs. A Rajput crossing a dense, dark jungle falls into a dry, abandoned well. He is trapped for hours till a passing youth throws him a rope and pulls him up. Nea
The Canadian PM has received an official reception by the prime minister of India Narendra Modi on Friday at the Rashtrapati Bhavan. The two are expected to talk some serious business at the bilateral meeting, and are expected to focus on trade, defence, civil nuclear cooperation, space, tackling climate c
Have you used Rotomac pen? The brand is owned by a Kanpur-based Kothari family, which owns Rotomac Global, now under CBI and ED scanner for round-tripping. Rotomac Global is run by Vikram Kothari, who is also the managing director with the firm. A key allegation against Kothari is that he o
India is faring worse and worse on Transparency International’s ‘Corruption Perception Index’: the latest for 2017 shows India ranking a poor 81 (placed between Ghana and Morocco) and the same 40 points out of 100 as the previous year. In 2015 and 2014, the number stood at 38 and