You’ll agree that one reliable way to determine a country’s strength is by measuring the number of remittances the country receives occasionally. This metric provides a great perspective into the wealth of any nation.
Most times, when people leave their home countries for another country, either temporarily or for relocation purposes, they still have to send money back home. They have to send money to family and friends, business partners, and so on. The total of all the money diasporan citizens send back home is known as remittances. Remittance inflow is one of the tools that members of the diaspora have used to support their home country’s economic development.
There’s no direct way to determine the exact size of remittance flows in a country. This is because some remittances take place through unofficial or sometimes illegal channels. However, several sets of data easily point to the volume of remittances today.
According to the World Bank, officially recorded remittance flows to low- and middle-income countries are expected to grow by 1.4% to $656 billion in 2023.
Check out this post to find out details of the top countries with the biggest international remittances inflow in 2023. Without any delay, we’ll get right into it!
Countries With the Highest Remittance Inflow
In many developing nations, remittance inflow contributes significantly to the economy. This is not the case with developed countries that majorly rely on public expenditures, exports, and business investments.
Here are some of the countries with the highest international remittances:
India can be traditionally referred to as the remittance powerhouse. It is currently topping the list of countries with the highest remittances received globally.
India is a diverse and rapidly expanding economy with a skilled workforce and a growing population. However, for Indians who live abroad, remittances make up a significant part of diaspora activity. Specific data analyses suggest that this growth can be attributed to the rupee’s declining value against the dollar. Also, another important factor is the relatively low cost of international transfers to India. In 2021, India received about $89.4 billion in remittances, and the numbers are expected to surge in the coming years.
Not only is Mexico home to the largest population of Spanish speakers in the world, but it also boasts one of the largest economies in the world. Plus, it is also the biggest trade partner for the United States.
In 2021 also, Mexico experienced a huge remittance increase going to a total of $54.1 billion. Not surprisingly, a significant portion of those funds came from the United States of America.
China has the world’s largest population with one of the largest populations of migrants in the world. Most of its population consists of young people and tech-savvy individuals and this contributes to its overall increase in remittance inflow. China’s remittance inflow in 2021 amounted to $53 billion.
Although remittances to China continue to grow, keep in mind that remittances make up only a fraction of the economy.
Made up of numerous islands, the Philippines has a massive diversity rate and has succeeded in becoming a hub for financial innovation. Remittances have helped to boost the economy significantly. In 2021, the Philippines recorded a $36.7 billion total remittances inflow, a 5.2% surge from the number in 2020. Like Mexico, most of these remittances originated from the United States.
Pakistan is one of the emerging economies in the Middle East and is the 7th most populous country in the world. Although its booming textile industry is the major contributor to its economy, Pakistanis in the diaspora have continued to prop up the country’s economy through remittances. With remittances totaling $31.2 billion in 2021, Pakistan continues to expect an influx of capital from citizens in the diaspora.
Without any argument, Egypt is home to the oldest and most renowned civilizations in the world. As a result, it’s no wonder that the biggest contribution to the country’s industries comes from tourism.
Unfortunately, despite the government’s attempts to grow the economy, the country has faced increasingly high levels of unemployment and poverty in recent years. This is why remittance inflows are so important to the country. In 2021, the country recorded about $31.5 billion and most of these transfers arrived in local currency.
Countries with the Highest Remittance Inflows in Africa
Sub-Saharan Africa has also experienced a surge in remittances over the years, with the most significant increase in 2021. In 2021, remittance inflows to Africa soared by about 14% to $49 billion. This number erases the fallout recorded during the pandemic in 2020.
Let’s take a look at some of the top recipients of remittances in Sub-Saharan Africa:
Democratic Republic of Congo
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