India to get record $70 bn remittances

Among the developing country regions, South Asia and Middle East and North African (MENA) saw the strongest growth, driven primarily by strong economic activity in the Gulf Cooperation Council (GCC) countries.

For South Asia, remittances in 2012 are expected to total USD 109 billion, an increase of 12.5 per cent over 2011. East Asia and Pacific region, is estimated to attract USD114 billion, an increase of 7.2 per cent over 2011; while MENA is expected to receive USD 47 billion, an increase of 8.4 per cent over the previous year. Remittances to Egypt have surged since 2010, perhaps driven by increased support by migrants to their families in the face of political uncertainty or savings brought by returning migrants.

Remittances to Latin America and Caribbean (LAC) were supported by a recovering economy and moderately improving labour market in the US, but were moderated by a weak European economy.

As a percentage of GDP, the top recipients of remittances in 2011 were Tajikistan (47 per cent), Liberia (31 per cent), Kyrgyz Republic (29 per cent), Lesotho (27 per cent), Moldova (23 per cent), Nepal (22 per cent), and Samoa (21 per cent).

Remittances are expected to remain flat to Europe and Central Asia and Sub-Saharan Africa regions, mainly because of the economic contractions in high-income European countries.

Remittance flows to Europe and Central Asia are estimated at a virtually unchanged USD 41 billion and USD 31 billion to Sub-Saharan Africa this year, although both regions are projected to make a robust recovery in remittance flows in 2013.

ALSO READ

Standard & Poor's removes Vedanta Resources from negative credit watch

Yahoo Japan suspects 22 million user IDs stolen

Weekly review: Market shrugs off deficit gap, rallies fifth week in a row

Probe panel on Walmart lobbying to submit report this week