What’s in the news?

• The World Bank has released its Migration and Development Brief report.

Highlights of the Report

• India is expected to receive a record $100 billion in remittance in 2022, the top recipient this year.
• India’s remittance will grow 12 per cent from 7.5 per cent last year, resulting in $100 billion flow as compared to $89.4 billion in 2021. The World Bank attributed the feat to the large share of Indian migrants earning relatively high salaries in the United States, United Kingdom and East Asia.
• However, the report has noted that despite reaching a historic milestone at $100 billion and retaining its position as the top recipient of remittances globally, India’s remittance flows are expected to account for only 3 per cent of its GDP in 2022.
• Led by strong performances in India and Nepal, the World Bank has predicted that remittance flows to South Asia this year will grow 3.5 per cent to reach $163 billion in 2022. 
• The report also says that despite global challenges in 2022, remittances to low- and middle-income countries will grow by 5% to $626 billion.

What is remittance?

• The World Bank defines it as the sum of worker’s remittances, compensation of employees, and migrants’ transfers as recorded in the IMF Balance of Payments. Workers remittances are current transfers by migrant who are considered residents in the source.
• Remittances are a vital source of household income for low- and middle-income countries.

reference:

https://indianexpress.com/article/explained/explained-economics/india-remittance-record-100-billion-world-bank-8301992/