The World Bank’s latest Migration and Development Brief highlights India’s significant position as the top remittance recipient, drawing attention to the evolving dynamics in the remittance landscape.
About World Bank Migration and Development Brief
- It is prepared by the Migration and Remittances Unit, Development Economics (DEC), the premier research and data arm of the World Bank.
- The brief is produced twice a year.
- The brief aims to provide an update on key developments in the area of migration and remittance flows and related policies over the past six months.
- It also provides medium-term projections of remittance flows to developing countries.
- It also presents recent developments on the Global Compact on Migration (GCM).
- A special topic is included in each brief.
Key highlights of the recent report
- The top five remittance recipient countries in 2023 are India ($125 billion), Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion).
- The United States continued to be the largest source of remittances.
- Remittances to low- and middle-income countries (LMICs) grew by an estimated 3.8 per cent in 2023, reaching a total of USD 669 billion.
- Resilient labour markets in advanced economies and Gulf Cooperation Council (GCC) countries played a pivotal role in supporting migrants’ ability to send money home.
- The Middle East and North Africa saw a decline in remittance flows for the second consecutive year, mainly driven by a sharp drop in flows to Egypt.
- Remittance flows to Europe and Central Asia also decreased by 1.4 percent after a significant gain in 2022.
- The report suggests a potential risk of a decline in real income for migrants in 2024 due to global inflation and low growth prospects.
- A special section of the report emphasizes the potential of leveraging remittances for development finance, particularly through diaspora bonds. The report says diaspora bonds can be structured to tap into diaspora savings held in foreign destinations, providing a stable source of funds.
Q1) What is the Global Compact on Migration (GCM)?
The Global Compact for Migration is the first-ever UN global agreement on a common approach to international migration in all its dimensions. The global compact is non-legally binding. It is grounded in values of state sovereignty, responsibility-sharing, non-discrimination, and human rights, and recognizes that a cooperative approach is needed to optimize the overall benefits of migration, while addressing its risks and challenges for individuals and communities in countries of origin, transit and destination.