Migration and Development Brief

The latest Migration and Development Brief reveals a continuing growth in remittance flows to low- and middle-income countries (LMICs) in 2023, albeit at a slower pace compared to previous years.

The brief is a biannual report.
Prepared by – The Migration and Remittances Unit, Development Economics (DEC).
Released by – World Bank.
Objectives – To provide the information about migration and remittance flows and related policies over the past 6 months and to provide medium-term projections of remittance flows to developing countries.

Key findings of the report

Remittances – It grew by an estimated 3.8% in 2023, reaching a total of USD669 billion in LMICs.
A 7.2% increase in South Asia with notable contribution by India.
A decline for the 2^nd consecutive year in Middle East and North Africa, driven by a sharp drop in flows to Egypt.
A decrease of 1.4% after a significant gain in 2022 in Europe and Central Asia.
India – It remained as the largest recipient with an estimated USD125 billion in 2023.

The top 5 remittance recipient countries include India, Mexico, China, Philippines, and Egypt.

Resilient labour markets in advanced economies and Gulf Cooperation Council (GCC) countries supported migrants' ability to send money home.
There is a potential risk of a decline in real income for migrants in 2024 due to global inflation and low growth prospects.
Banks continue to be the costliest channel for sending remittances, with an average cost of 12.1%.
Recommendation – To leverage remittances for development finance, particularly through diaspora bonds to tap into diaspora savings held in foreign destinations.
It emphasized on the need for inclusive labour markets and social protection policies to sustain remittance flows.

Source:

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