Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The World Bank forecasts remittances to low and middle-income countries will rise by 3.5 percent next year/AFP


Poorer countries’ remittances to grow again in 2017: World Bank

The World Bank forecasts remittances to low and middle-income countries will rise by 3.5 percent next year/AFP

WASHINGTON, United States, Oct 3 – Remittances, a major source of revenue for the world’s poorest countries, are due to grow again this year after falling two years in a row, the World Bank said Tuesday.

Such cash transfers to low and middle-income countries are on course to rise by 4.8 percent in 2017, reaching $450 billion.

Economic expansion in Russia, Europe and the United States will see migrants and families send increasing amounts of cash back to Sub-Saharan Africa, Europe, Central Asia, Latin America and the Caribbean, according to a World Bank report.

But growth will be subdued for East Asia and South Asia, home to major recipient countries, the report found. As oil prices fall, Gulf countries, traditionally large sources of outbound remittance flows, are spending less and discouraging recruitment of foreign workers.

“Remittances are a lifeline for developing countries,” Dilip Ratha, lead author of the bank’s Migration and Development Brief, said in a statement.

“This is particularly true following natural disasters, such as the recent earthquakes in Mexico and the storms devastating the Caribbean.”

But fees remain high. Sending $200 home cost 7.2 percent on average in the third quarter of this year, well above the Sustainable Development Goal target of three percent, according to the report.

Ratha called on countries to lower costs associated with remittances. Exclusive relationships between postal services and money transfer companies drive up prices. Strict money-laundering regulations are also barriers, causing banks to close accounts, he said.

India is on track to be the top recipient in 2017, taking in $65 billion, followed by China, with $61 billion, and the Philippines, with $33 billion, while Mexico would reach a record at $31 billion.

The World Bank forecasts remittances to low and middle-income countries will rise by 3.5 percent next year.

Advertisement. Scroll to continue reading.


Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...