How remittances affect a country’s development
They lift people out of poverty—but the cost to send money is much higher than it should be
IN 2022 MIGRANTS sent home nearly $800bn, according to data from the World Bank. Around 80% of these remittances were sent to low- and middle-income countries. India received $100bn; Mexico got $60bn. Remittances were the biggest source of capital inflow for low- and middle-income countries in 2022, exceeding foreign direct investment and aid. Their importance is growing. In 2023, global remittances are expected to increase to $815bn. Can that money help drive growth in recipient countries?
From the March 25th 2023 edition
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