The Latest Global Remittance Industry Statistics Explained
Global remittances are projected to decline by 7.5% to $616 billion in 2021 due to the economic impact of the COVID-19 pandemic.
The statistic indicates that global remittances, which refer to money transfers from foreign workers to their home countries, are forecasted to decrease by 7.5% to $616 billion in 2021 compared to the previous year. This decline is primarily attributed to the adverse economic effects of the COVID-19 pandemic, which has led to widespread job losses, reduced wages, and economic uncertainties, affecting the ability of migrants to send money back to their families and communities. The decrease in remittances can have significant implications for developing countries heavily reliant on these transfers as a source of income, potentially impacting household spending, poverty levels, and overall economic stability in those regions.
The global remittances reached $714 billion in 2019.
The statistic “The global remittances reached $714 billion in 2019” indicates the total amount of money transferred by individuals living and working abroad to their home countries in that particular year. Remittances play a significant role in the global economy by supporting the livelihoods of millions of families in developing countries. The $714 billion figure reflects the economic impact and financial support provided to recipient households, contributing to poverty alleviation, education, healthcare, and overall economic development. This statistic serves as a barometer of international migration patterns and the strength of global economic connections between countries.
India is the largest remittance-receiving country in the world, with an estimated $83 billion in 2020.
The statistic indicates that India received the highest amount of remittances globally in 2020, totaling an estimated $83 billion. Remittances are funds transferred by individuals working abroad to their home country, typically to support their families or for investment purposes. India’s status as the largest recipient of remittances highlights the significant financial contributions made by its overseas population to the country’s economy. The influx of remittances plays a crucial role in improving the standard of living for many households in India, boosting consumption levels, and fostering economic development. This statistic underscores the importance of remittances as a key source of income and financial stability for millions of people in India.
The United States is the top remittance-sending country, with an outward flow of $68 billion in 2020.
This statistic indicates that the United States led in sending remittances globally in 2020, with a total outward flow of $68 billion. Remittances are the transfer of money by individuals working in a foreign country back to their home country. The significant amount sent by the United States highlights the importance of remittances in supporting economies worldwide, particularly in developing countries where these funds are crucial for families’ livelihoods, education, healthcare, and overall economic stability. The high amount sent by the United States underscores its role as a key player in global financial transactions and its contribution to supporting families and communities around the world through remittance payments.
The average cost of sending remittances globally has remained nearly constant at around 7% in 2020.
The statistic indicating that the average cost of sending remittances globally has remained steady at around 7% in 2020 suggests that the fees associated with transferring money across borders have not significantly fluctuated despite the various challenges faced during the year, such as the COVID-19 pandemic. This can impact individuals sending money to their families or loved ones in other countries, as a consistent 7% cost could represent a substantial portion of the transferred amount. It also highlights the importance of monitoring and potentially reducing remittance fees to support financial inclusion and facilitate the flow of funds to those in need, particularly in times of economic uncertainty.
In Sub-Saharan Africa, the average cost of sending $200 remained the highest, at around 8.9% in the fourth quarter of 2020.
In Sub-Saharan Africa, the average cost of sending $200 refers to the percentage of the total amount that is charged as a fee for remittance services. This statistic indicates that on average, individuals sending $200 to Sub-Saharan Africa had to pay approximately 8.9% as a fee to complete the transfer in the fourth quarter of 2020. The fact that this percentage is the highest compared to other regions suggests that remittance costs in Sub-Saharan Africa are relatively high. High remittance costs can have significant implications for individuals and families reliant on these transfers for financial support, as they may receive lesser amounts of money due to fees charged by remittance service providers. Addressing high remittance costs in the region could potentially help improve the economic well-being of recipients and foster greater financial inclusion.
Remittances to low and middle income countries reached $540 billion in 2020, exceeding foreign direct investment flows.
The statistic indicates that the total amount of money sent by migrants to low and middle-income countries in the form of remittances reached $540 billion in 2020, surpassing the amount of foreign direct investment (FDI) flows into these countries. This suggests that remittances have become a significant source of financial support for such economies, potentially playing a crucial role in poverty reduction, economic growth, and livelihood improvements within these countries. The substantial amount of remittances signifies the strong connections between migrants working in higher-income countries and their families and communities back home, highlighting the importance of these cross-border financial transfers for sustaining economic well-being in developing nations.
Remittances inflows declined in all regions of the world with the exception of Latin America and the Caribbean in 2020.
The statistic indicates that in 2020, the amount of money sent back to their home countries by individuals living and working abroad, known as remittances, decreased globally in all regions of the world except for Latin America and the Caribbean. This decline in remittance inflows suggests that the global economic downturn and disruptions caused by the COVID-19 pandemic had a significant impact on the ability of migrants to send money to their families and communities. The exception of Latin America and the Caribbean could be attributed to factors such as specific industries or sectors that were less affected in those regions, as well as policy interventions or support programs that may have mitigated the decline in remittances.
Globally, two-thirds of remittances are sent through money transfer operators.
The statistic “Globally, two-thirds of remittances are sent through money transfer operators” indicates that a significant majority of money sent by individuals to their families or friends in other countries is facilitated through specialized financial service providers known as money transfer operators. These entities offer secure and efficient ways for people to transfer funds across borders, allowing for the seamless and reliable transfer of money across the world. This statistic highlights the central role that money transfer operators play in the global remittance market, serving as vital intermediaries that enable individuals to support their loved ones financially from afar.
The global remittance market is expected to grow to $930.44 billion by 2026.
This statistic indicates that the global remittance market, which refers to the transfer of money from one country to another, is projected to see significant growth reaching a value of $930.44 billion by the year 2026. This growth suggests an increasing trend in the flow of financial transactions across international borders, likely driven by factors such as globalization, migration, and increased economic interconnectivity. The rise in remittances may have important implications for both sending and receiving countries, influencing economic development, poverty alleviation, and financial inclusion. As such, monitoring and understanding the dynamics of the remittance market can provide valuable insights into broader global economic trends and patterns.
The World Bank reports that fees for remittances are three times higher than the Sustainable Development Goal target of 3%.
The statistic provided indicates that fees charged for remittances, which are money transfers from individuals working in one country to their families in another country, are significantly higher than the Sustainable Development Goal target of 3%. This implies that individuals sending money back to their families are being charged exorbitant fees, making it more expensive for them to support their loved ones. The high fees for remittances can have negative economic implications, as they reduce the amount of money that ultimately reaches the recipient and may hinder efforts towards poverty reduction and economic development in countries that rely on remittances as a significant source of external income. Addressing these high remittance fees is crucial in ensuring that a larger portion of the money sent by migrant workers reaches those who depend on it for their livelihood.
The remittances to South Asia grew by around 5.2% in 2020.
The statistic “The remittances to South Asia grew by around 5.2% in 2020” indicates that the total amount of money sent by migrant workers to their home countries in South Asia increased by approximately 5.2% compared to the previous year. This growth suggests that despite the challenges and economic disruptions caused by the global pandemic in 2020, remittances remained resilient and continued to flow into the region. The increase in remittances could have significant impacts on the economies of South Asian countries, providing financial support to families, contributing to economic stability, and potentially boosting consumption and investments in the region.
As per World Bank report, about $9.3 billion flowed from the U.S. to Sub-Saharan Africa in 2019 in form of remittances.
The statistic, based on a World Bank report, reveals that approximately $9.3 billion was transferred from the United States to countries in Sub-Saharan Africa in 2019 in the form of remittances. Remittances are funds sent by individuals living and working in one country to their home country to support family members or for other purposes. This significant flow of money highlights the important role that remittances play in the economies of Sub-Saharan African countries, providing a crucial source of financial support for many households and contributing to economic development in the region. The large sum of money underscores the strong ties between the U.S. and Sub-Saharan Africa and the impact of diaspora communities on both regions.
The largest source of external financing in low and middle-income countries are remittances, surpassing foreign direct investment, private debt and portfolio equity, and official development assistance.
This statistic highlights that remittances—a form of financial aid sent by foreign workers back to their home countries—play a crucial role as the primary source of external financing in low and middle-income countries. The statement indicates that remittances exceed other significant sources of financial inflows such as foreign direct investment, private debt, portfolio equity, and official development assistance in these countries. Remittances provide a lifeline for families and communities, often acting as a stable source of income that can support economic growth, poverty reduction, and overall development in these nations. This underscores the importance of understanding and leveraging remittances in economic planning and policymaking in low and middle-income countries.
Global remittance flows to Sub-Saharan Africa registered a small decline of 0.4% to $44 billion in 2020.
The statistic that global remittance flows to Sub-Saharan Africa experienced a slight decline of 0.4% to $44 billion in 2020 suggests that there was a reduction in the amount of money being sent by individuals living and working abroad to their home countries in the Sub-Saharan region. This decline could be attributed to various factors such as the economic impact of the COVID-19 pandemic, which may have resulted in reduced incomes, job losses, and overall economic uncertainty. Despite the small decline, remittances continue to play a significant role in the economies of Sub-Saharan African countries, providing crucial financial support to families and contributing to overall economic stability and development in the region.
Remittance flows to the Middle East and North Africa region fell by 8% to $56 billion in 2020, as compared with 2019.
The statistic indicates that remittance flows to the Middle East and North Africa region decreased by 8% from $61 billion in 2019 to $56 billion in 2020. This decline suggests a decrease in the amount of money transferred by individuals working abroad back to their home countries in the region. Factors such as the global economic downturn, travel restrictions, job losses among migrants, and other impacts of the COVID-19 pandemic likely contributed to this decrease in remittance flows. The reduction in remittances may have negative implications for recipient households and the overall economy of the region, as remittances are an important source of income and support for many families in the Middle East and North Africa.
The global average cost of sending $200 remained at 6.5% in 2019, more than double the Sustainable Development Goal target of 3%.
The statistic indicates that in 2019, the average cost of sending $200 globally stood at 6.5%, which means that for every $200 sent, a fee equivalent to 6.5% of the amount was incurred. This figure is more than double the Sustainable Development Goal target of 3%, highlighting a discrepancy between the actual costs of money transfers and the desired affordability level set by international development goals. The high cost of sending money could potentially have negative impacts on individuals, families, and businesses relying on remittances, as well as hinder progress towards achieving broader economic objectives and financial inclusion goals. Efforts to reduce remittance costs and promote greater affordability and accessibility in financial services may be necessary to address this disparity.
Conclusion
The global remittance industry continues to play a crucial role in the global economy, with millions of people relying on these international money transfers for their livelihoods. As evidenced by the statistics presented, the industry is growing steadily and embracing technological advancements. It is important for policymakers, financial institutions, and service providers to adapt to changing trends and ensure that remittance services remain accessible, affordable, and secure for all individuals involved. By staying informed and proactive, we can contribute to a more efficient and inclusive remittance ecosystem for the benefit of senders and recipients worldwide.
References
0. – https://www.www.un.org
1. – https://www.blogs.worldbank.org
2. – https://www.www.statista.com
3. – https://www.www.afreximbank.com
4. – https://www.data.worldbank.org
5. – https://www.www.worldbank.org
6. – https://www.www.knomad.org
7. – https://www.www.prnewswire.com
