Global remittances are forecast to grow from $550 billion in 2013 to $700 billion in 2016, with the bulk of the money reaching the developing countries, a report by the World Bank said.
The World Bank’s latest Migration and Development brief said that remittance flows to developing countries were estimated to be around $414 billion last year, up 6.3 per cent over a year ago. The number is expected to reach $540 by 2016.
Remittances are now about three times bigger than the size of official development assistance and larger than private debt portfolio equity flows to developing countries. They are higher than the foreign exchange reserves in at least 14 developing countries and are equivalent to at least half of the level of reserves in more than 26 developing countries.