Published on People Move

Remittance flows to developing countries recover to pre-crisis levels

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We have just released our latest estimates and outlook for remittance flows to developing countries (see brief). Officially recorded remittance flows to developing countries recovered quickly to $325 billion in 2010 after the global financial crisis. But they have not kept pace with rising prices in recipient countries. Remittance flows are expected to grow at lower but more sustainable rates of 7-8 percent annually during 2011-13 to reach $404 billion by 2013.
 
Remittance flows to Latin America are growing again in 2011 because of the stabilization of the U.S. economy. Remittance flows from Russia and the GCC countries to Asia have been strong due to high oil prices. However, weak job markets in Western Europe are creating pressures to reduce migration.

The crisis in the Middle East and North Africa has brought a great deal of uncertainty for migration and remittance flows. These political crises and the recent global financial crisis have highlighted, once again, the need for high-frequency data on migration and remittances.


Authors

Sanket Mohapatra

Professor, IIM Ahmedabad

Ani Silwal

Economist in the World Bank’s Poverty and Equity Global Practice

Dilip Ratha

Lead Economist and Economic Adviser to the Vice President of Operations, Multilateral Investment Guarantee Agency, World Bank

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