The World Bank suggests in their latest Migration and Remittances study for 2016, that remittance flows have declined by 2.4%, to 429 billion US Dollars, after a 1% decline in 2015. This is the first time in recent history that remittances have declined for 2 years in a row. TransferMate solutions can help your company with remitting money to all of these countries, simplifying your international wire transfers processes and saving you valuable resources, time and money.
Here are the top five remittance-receiving countries for 2016:
India – $62.7 billion
Indians working abroad continue sending more money home than their counterparts from other countries. Since 2012, India is the biggest remittance-receiving country for 4 years in a row, even if there was a big decrease of 8.9% in 2016, receiving around $62.7 billion.
Indian remittances are not as large a proportion of GDP, but still, there are sub-national variations in the impacts of remittances. Remittances in Kerala contribute significantly to household consumption and are estimated at 36.3% of the net state domestic product.
Because emergencies and disasters are common in India, remittances are also a vital source for people whose properties have been destroyed.
With the rise of the internet era, international wire transfers have increased significantly. The TransferMate solution is one such example of a competitive alternative to the aforementioned.
China – $61.0 billion
It is no wonder that China is in 2nd place on the list, considering the fact it is the largest country in the world with over 1.3 billion people in addition to a huge number of Chinese communities throughout the world sending money home on a regular basis. China is one of the fastest growing economies, outranking the USA as the world’s largest trading power, with over $34 trillion nominal GDP.
Even so, the East Asia and Pacific (EAP) region registered a 1.2% estimated decline in remittances in 2016, compared with 3.8% growth in 2015.
International money transfer flows were affected by the weak growth of Europe, Russia and the Gulf Cooperation Council (GCC) countries’ economies, cumbersome regulations, exchange controls, and anti-migrant policies also (structural factors).
With USD being a popular currency for Chinese remitters, TransferMate can facilitate these transfers with ease.
Philippines – $29.9 billion
The Philippines, officially known as the Republic of the Philippines, comprises 7,107 islands in the western Pacific Ocean. The Filipino economy is heavily reliant on remittances as a source of foreign currency, surpassing foreign direct investment. The Philippines is a newly industrialized country, with an economy supported by agriculture but with substantial contributions from manufacturing, mining, service industries like tourism, business process outsourcing and also remittances from overseas Filipinos.
Remittances to the Philippines, estimated at around $30 billion remained resilient, growing by 4.9% in 2016 relative to 4.4% in 2015. In contrast, remittances to Indonesia in 2016 fell by 4.4%, reversing the positive annual growth trend since 2010.
Mexico – $28.5 billion
Mexico is the fifth-largest country in the Americas and the 14th largest independent nation in the world. As the only Latin American member of the Organisation for Economic Co-operation and Development, the Mexican economy has developed as an upper middle-income country. The country has the 11th largest economy in the world by GDP by purchasing power parity.
The remittances from Mexican citizens working in the US account for 0.2% of Mexico’s GDP and is the seventh largest source of foreign income after oil, industrial exports, manufactured good, electronics, automobiles and food exports. According to the World Bank, remittances grew with 8.8% in 2016.
One of the main reasons for this growth is the constant improvement of the US labor market. Another reason is the weak peso (19% down vs USD in 2016). Weakened peso definitely helped the sizable increase in remittances in the short term in 2016 with remittances spiking in January, February, May, September, and November, all months when the peso saw sharp depreciations versus the U.S. dollar.
Pakistan – $19.8 billion
Saudi Arabia remains the largest source of remittances for Pakistan. Summary statistics, derived from a KNOMAD/ILO survey shows that in 2015 of recruitment costs paid by Pakistani construction workers in Saudi Arabia raised. These workers pay more than $4,000 on average upfront in recruitment fees. Some pay as much as $9,000.
In Pakistan, the 12% of remittances growth witnessed in 2015 moderated to an estimated 2.8% in 2016.
What role does TransferMate play in all of this?
Due to TransferMate’s wide global regulation and experience in dealing with many remittances to the countries mentioned above, we are the international payments provider of choice for some of the world’s leading companies.
For more information on TransferMate’s services, visit our website or Contact us today!