This brief article will highlight the main recipient countries of international remittances. If you want more insights into the international money inflow and outflow, read 15 Countries That Receive the Most International Remittances.
5. Egypt
Remittance Inflows as a Share of GDP: 7.82%
Egypt has positioned itself as one of the top recipients of remittances in Africa, with a significant portion of its diaspora residing in the Gulf countries, the United States, and Europe. In 2022, Egypt witnessed a 10% drop in remittance inflows, falling from a record high of $31.5 billion in 2021 to $28.3 billion. Analysts attribute this significant reduction to a rising trend among Egyptians to either engage in foreign exchange transactions on the black market due to an increasing disparity between the parallel market and official exchange rates or to hold onto their foreign currency amidst fears of a potential devaluation of the Egyptian pound. It’s also noteworthy that the Egyptian government, as part of an agreement for a $3 billion loan package with the IMF in October 2022, consented to transition to a more flexible exchange rate regime. This policy shift is expected to address some of the underlying issues that have contributed to the fluctuation in remittance flows.
4. Philippines
Remittance Inflows as a Share of GDP: 8.04%
The Filipino diaspora is widespread, with significant communities in the United States, Saudi Arabia, and the United Arab Emirates. Notably, the Philippines experienced a substantial downturn recently. In 2021, remittances accounted for 9.3% of the country’s GDP, highlighting the significant contribution of overseas Filipino workers (OFWs). However, in a stark reversal, remittance inflows plummeted to just 2.2% of the GDP in 2022. The drastic reduction has highlighted the vulnerability of relying heavily on remittances. Global economic uncertainty, spurred by ongoing geopolitical tensions and shifts in employment opportunities abroad, has likely played a role in this downturn.
3. The Dominican Republic
Remittance Inflows as a Share of GDP: 9.46%
In 2022, the Dominican Republic experienced a notable decline in its remittance inflows, with a reduction of 4.3%. This drop reflects a shift in the financial landscape and the dynamics of money transfers into the country. Remittances have consistently contributed to household income and aided in poverty alleviation. The current downturn can be attributed to changes in employment opportunities for Dominicans abroad and potential shifts in migration patterns.
2. Guatemala
Remittance Inflows as a Share of GDP: 15.7%
According to the World Bank, Guatemala witnessed a significant surge in remittance flows in 2022, registering an 18% increase. The increase is linked to the resilience and hard work of the Guatemalan diaspora, many of whom are in the United States, contributing diligently to the US labor market and, in turn, ensuring a steady stream of financial support to their families. This upward trend in remittances has been a source of relief for many Guatemalan households, particularly in rural areas, where these funds are often utilized for essential needs, education, and healthcare. Recognizing the importance of these financial inflows, the Guatemalan government is increasingly emphasizing policies and initiatives that facilitate remittance inflows.
1. Nepal
Remittance Inflows as a Share of GDP: 23.1%
Nepal receives around $9 billion on average in international remittances, comprising 23.1% of its GDP. Recognizing their undeniable importance in development, the Nepal Rastra Bank has introduced policies encouraging the use of formal remittance channels. According to the World Bank, the country has managed to remain unscathed by the exchange rate crises that have affected many other countries in the region, such as Afghanistan and Pakistan. Looking ahead to 2024, experts project a robust growth trend of 3.6%, with the total remittance inflow anticipated to surpass the $10 billion mark.
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