The Latest Remittance Industry Statistics Explained
The global remittance amounts reached $714 billion in 2019.
The statistic indicates that individuals around the world sent a total of $714 billion in remittances in the year 2019. Remittances refer to money transfers made by individuals working in one country to their home country, typically to support family members or for other purposes. This substantial amount signifies the significant financial contributions made by migrant workers to their families and communities, as well as the broader impact on the global economy. The data underscores the importance of remittances as a key source of income for many households in developing countries and highlights the scale of international financial flows driven by migration.
India is the highest receiver of remittances globally in 2019, with a share of 11.7%.
The statistic that India is the highest receiver of remittances globally in 2019, with a share of 11.7%, means that India received the highest amount of money transferred by foreign workers to their home country compared to any other country in the world. Remittances play a significant role in the Indian economy, providing a source of financial support to millions of families and contributing to the country’s overall economic growth. The fact that India holds such a substantial share of global remittances highlights the importance of international migration and the role played by Indian expatriates in supporting their families and communities back home.
The United States is the largest sender of remittances worldwide, with $68.5 billion sent in 2019.
The statistic stating that the United States is the largest sender of remittances worldwide, with $68.5 billion sent in 2019, highlights the significant role that remittances play in the global economy. Remittances refer to money sent by migrants working abroad back to their home countries, and they serve as a crucial source of financial support for millions of families around the world. The fact that the United States tops the list of remittance senders underscores the country’s large immigrant population and the importance of these financial flows in supporting families and economies in other parts of the world. Additionally, the sheer magnitude of the amount sent ($68.5 billion) emphasizes the scale of the impact that remittances can have on both individual households and broader economic development efforts.
Revenue from transaction fees for remittances sent worldwide reached $45 billion in 2019.
The statistic indicates that the total revenue generated from transaction fees for remittances sent globally amounted to $45 billion in 2019. This figure reflects the significant financial activity and demand for cross-border money transfers during that year, highlighting the essential role that remittances play in global economies. It suggests that a substantial amount of money is being earned by financial institutions and service providers through these transactions, primarily from the fees charged for facilitating the remittances. The data underscores the scale of international money transfers and the resulting economic impact on both sending and receiving countries.
The global average cost of sending $200 remained high at around 7% in the first quarter of 2019.
The statistic indicates that the average cost of sending $200 internationally was approximately 7% in the first quarter of 2019. This means that, on average, sending $200 across borders incurred a fee equivalent to 7% of the total amount. The term “high” suggests that this cost is considered significant or burdensome, potentially impacting individuals or businesses who rely on international money transfers. Fluctuations in global remittance costs can be influenced by various factors, such as exchange rates, fees charged by intermediary financial institutions, and regulatory requirements, among others. Efforts to reduce these costs can benefit individuals in terms of affordability and accessibility of cross-border financial transactions.
According to World Bank estimates, remittances to low and middle-income countries reached a record high of $548 billion in 2019.
The statistic “According to World Bank estimates, remittances to low and middle-income countries reached a record high of $548 billion in 2019” highlights the significant financial inflow that individuals living in higher-income countries send back to their home countries. Remittances play a crucial role in supporting the economies of low and middle-income countries, providing a lifeline for many families and contributing to poverty reduction and economic development. The increase to a record high of $548 billion in 2019 signifies the growing importance of these financial flows and underscores the resilience and resourcefulness of migrant populations worldwide. This statistic underscores the need for policymakers and stakeholders to continue supporting and facilitating remittance flows to further leverage their positive impact on the economies of receiving countries.
Sub-Saharan Africa still has the highest average remittance costs globally at 8.9%
The statistic stating that Sub-Saharan Africa has the highest average remittance costs globally at 8.9% means that individuals sending money to countries in this region incur relatively high fees compared to other regions. Remittances are funds sent by individuals working in another country to their home country, often to support family members. The high average cost of sending remittances to Sub-Saharan Africa can potentially have negative impacts on recipients, as it reduces the amount of money they ultimately receive. These high costs may be attributed to factors such as limited competition among money transfer operators, regulatory constraints, lack of access to digital financial services, and the reliance on traditional remittance channels. Efforts may be needed to lower these costs to improve the benefits of remittances for individuals and families in Sub-Saharan Africa.
By 2026, it is projected the global remittance market will reach $930.44 billion.
The statistic states that by the year 2026, the global remittance market is expected to grow to a value of $930.44 billion. This figure represents the total amount of money transferred internationally by individuals to their home countries, typically to support family members or for other financial purposes. The projected rise in the global remittance market reflects continued globalization, increased migration patterns, and advancements in financial technology that make it easier and more efficient to send money across borders. This significant market value highlights the importance of remittances as a crucial source of financial support for many families and communities worldwide, and underscores the continued growth and impact of this form of financial transfer on the global economy.
Remittances to Europe and Central Asia were projected to slump by 28% in 2020.
The statistic “Remittances to Europe and Central Asia were projected to slump by 28% in 2020” indicates a significant anticipated decrease in the amount of money that individuals living in Europe and Central Asia send back to their home countries. Remittances play a crucial role in many economies, providing financial support to families, contributing to local consumption, and often serving as a stable source of income. A 28% decline suggests a substantial economic impact that could result in hardships for many households dependent on these funds. This decrease could also have broader implications for the overall economic stability and development of the region as a whole.
In 2019, 8.4% of remittances were sent through money transfer operators, down from 11.3% in 2014.
This statistic indicates the percentage of remittances processed through money transfer operators in both the years 2014 and 2019. The data shows a decrease from 11.3% in 2014 to 8.4% in 2019, indicating a shift away from using traditional money transfer operators as the preferred method for sending remittances. This decline could suggest an increase in the use of alternative remittance channels such as online platforms or mobile apps, which may offer more convenience, speed, and lower fees compared to traditional money transfer operators. The change in percentage highlights a notable trend in how individuals are choosing to send money internationally, possibly influenced by advances in technology and changing consumer preferences.
South Asia is the least expensive region to send money to, with average costs of 4.95% in 1Q 2020.
The statistic indicates that South Asia has the lowest average costs for sending money compared to other regions. Specifically, in the first quarter of 2020, the average cost of sending money within South Asia was 4.95%. This means that sending money within South Asia is relatively cheaper compared to other regions around the world. Lower costs can benefit individuals sending money to support families or for business purposes, as it allows them to retain more of the amount being sent. This information suggests that if one is looking to send money internationally, choosing South Asia as the destination region may result in lower transfer fees and better cost-effectiveness.
The global digital remittance market is projected to reach USD 35.01 billion by 2026, exhibiting a CAGR of 16.19% during the forecast period.
The statistic indicates that the global digital remittance market is expected to experience significant growth, with a projected value of USD 35.01 billion by the year 2026. This growth is represented by a Compound Annual Growth Rate (CAGR) of 16.19% over the forecast period. The increasing trend in digital remittances can be attributed to various factors such as technological advancements, expanding access to mobile devices, and the growing demand for efficient and cost-effective cross-border payment solutions. These developments are driving the adoption of digital remittance services worldwide and are expected to continue shaping the market landscape in the coming years.
Philippines ranks as the third-highest inflow of remittances with $35.2 billion in 2020.
The statistic stating that the Philippines ranks as the third-highest inflow of remittances with $35.2 billion in 2020 signifies the substantial amount of money sent by overseas Filipino workers to their home country. This ranking indicates that the Philippines received the third-largest amount of remittances globally, highlighting the significance of remittances as a critical source of income for many families and the country’s economy as a whole. The substantial inflow of remittances demonstrates the strong ties between overseas Filipinos and their families back home, emphasizing the importance of this financial support in improving the quality of life and contributing to economic development in the Philippines.
Latin America and the Caribbean received $96 billion in remittances in 2019, an increase of 7.4% from the previous year.
The statistic ‘Latin America and the Caribbean received $96 billion in remittances in 2019, an increase of 7.4% from the previous year’ indicates the total amount of money sent by migrants to their home countries in the Latin America and Caribbean region during the year 2019. Remittances play a significant role in the economies of many countries in the region, as they provide financial support to households, boost consumption, and contribute to overall economic development. The 7.4% increase from the previous year suggests that the amount of money being sent back to the region is growing, which could have positive impacts on poverty alleviation and socio-economic development in the recipient countries.
Notably, 74% of remittance senders use a mobile phone to send money overseas.
The statistic reveals that a substantial majority, specifically 74%, of individuals who send money overseas through remittance services use a mobile phone as their preferred method of conducting these transactions. This highlights the increasing trend and convenience of mobile technology in facilitating international monetary transfers. The use of mobile phones for remittance services offers senders a convenient and efficient way to transfer funds to their intended recipients, potentially reducing costs associated with traditional methods such as bank transfers or physical agents. This statistic underscores the significance of mobile technology in the remittance industry and reflects the evolving preferences of consumers towards digital solutions for financial transactions.
An estimated 25.2 percent of the global population sent remittances digitally via a smartphone in 2018.
The statistic “An estimated 25.2 percent of the global population sent remittances digitally via a smartphone in 2018” represents the proportion of individuals worldwide who utilized smartphones for sending remittances during the specified year. Remittances are funds sent by individuals working in foreign countries to their home countries to support their families or for other purposes. The percentage indicates a significant adoption of digital technology for financial transactions, highlighting the increasing trend towards mobile-based financial services. This statistic suggests a growing reliance on digital platforms for remittance transfers, which can offer convenience, speed, and potentially lower costs compared to traditional money transfer methods.
As of 2015, women send 74% of all remittances.
The statistic “As of 2015, women send 74% of all remittances” means that based on data collected in 2015, women were responsible for sending 74% of the total remittances globally. Remittances refer to the money that foreign workers send back to their home countries, often to support their families or contribute to the local economy. The fact that women sent the majority of these remittances indicates that they play a significant role in financially supporting their families and communities across borders. This statistic highlights the important economic contribution that women make through remittances and underscores the need to consider their unique financial circumstances and challenges when designing policies and programs related to migration and remittance sending.
The average cost of sending remittances from G20 countries was 7.1% in the first quarter of 2020.
The statistic stating that the average cost of sending remittances from G20 countries was 7.1% in the first quarter of 2020 refers to the average proportion of the amount sent by individuals as remittances abroad that is consumed by transaction fees or charges. Specifically, in this instance, on average, individuals sending money from G20 countries incurred fees equivalent to 7.1% of the total amount sent during the specified period. This statistic highlights the financial burden faced by individuals sending remittances and underscores the impact that these transaction costs can have on the overall economic well-being of both individual remitters and recipient countries.
Remittances constituted 23.8% of GDP in Nepal in 2020.
The statistic ‘Remittances constituted 23.8% of GDP in Nepal in 2020’ indicates that remittances, which are money sent by individuals working abroad back to their home country, accounted for nearly a quarter of Nepal’s Gross Domestic Product (GDP) in 2020. This suggests a significant reliance on remittances as a source of income and economic support for the country. The high percentage points to the importance of remittances in driving economic activity, sustaining households, and contributing to Nepal’s overall economic development. Understanding the magnitude of remittances relative to GDP can provide insights into the vulnerability of the country’s economy to external factors, such as global economic conditions and international migration trends.
In 2020, global remittance flows to low- and middle-income countries (LMICs) is projected to have fallen by 7.2% to $508 billion due to the COVID-19 crisis.
The statistic indicates that in 2020, the total amount of money transferred from individuals in high-income countries to their counterparts in low- and middle-income countries decreased by 7.2% to $508 billion as a result of the COVID-19 pandemic. Remittances play a crucial role in the economies of many LMICs as they provide a steady source of income for millions of families. The decline in remittance flows can have significant impacts on the recipients’ ability to meet their basic needs, contribute to the local economy, and sustain their livelihoods. This decrease may be attributed to various factors, including widespread job losses, reduced incomes, and disruptions to global economic activities caused by the pandemic.
References
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