India tops global remittance charts at $125 billion in 2023
India stands out as the top remittance recipient, showcasing the evolving dynamics in this financial landscape.
Remittances to LMICs grew by an estimated 3.8% in 2023, totaling USD 669 billion. Resilient labor markets in advanced economies and Gulf Cooperation Council (GCC) countries played a crucial role in supporting migrants' ability to send money home.
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The report suggests a potential risk of a decline in real income for migrants in 2024 due to global inflation and low growth prospects.
In South Asia, remittance flows to India experienced notable growth, contributing to the region's overall positive trend.
South Asia witnessed a 7.2% increase in remittances in 2023.
The Indian economy outperformed previous forecasts, reaching USD 125 billion in remittances for the year. This achievement is attributed to a tight labor market in the United States and robust employment growth in Europe.
Despite these positive trends, challenges and potential risks are highlighted.
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% after a significant gain in 2022.
India retained its position as the largest recipient of remittances, receiving an estimated USD 125 billion in 2023.
