Washington: According to World Bank, India continues to be the leading nation in remittances pulling in USD 70 billion from its global migrant workforce in 2014. As per World Bank’s study of remittance, the money workers and professionals working in foreign lands send back to their native countries, attributed this mainly to weak economic growth in Europe, deterioration of the Russian economy and the depreciation of the euro and rouble.
This report says, remittances to the developing world are expected to reach $ 440 billion in 2015, an increase of 0.9 per cent over the previous year. Even Global remittances, including those to high income countries, are projected to grow by 0.4 per cent to $ 586 billion. On the otherhand United States, Saudi Arabia, Germany, Russia and the United Arab Emirates (UAE) remained the top five migrant destination countries and India, China, Philippines, Mexico and Nigeria are the top five remittance recipient countries, in terms of value of remittances, the report said.
“Total remittances in 2014 reached $ 583 billion. This is more than double the ODA in the world. India received $ 70 billion, China $ 64 billion, the Philippines $ 28 billion. With new thinking these mega flows can be leveraged to finance development and infrastructure projects,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President.
The global average cost of sending $200 held steady at 8 per cent of the value of the transaction, as of the last quarter of 2014.
Despite its potential to lower costs, the use of mobile technology in cross-border transactions remains limited, due to the regulatory burden related to combating money laundering and terrorism financing, the report said.