Key Points
After growing over 24 per cent to post a record-high level of $111 billion in 2022, remittance flows to India are expected to grow by only 0.2 per cent in 2023, as per the latest Migration and Development Brief released by the World Bank..
Remittances are likely to get affected by slower growth in the OECD (Organisation for Economic Co-operation and Development) economies limiting employment and wage gains for migrants along with a diversion of formal remittances toward informal money transfer channels, the report said...
The growth of remittance flows to South Asia in 2023 is expected to slow to 0.3 per cent in response to an economic slowdown in the OECD countries, especially the high-tech sector in the United States, which affects demand for IT workers..
Remittance flows to the other six South Asian countries will also be limited by the demand for migrants in the GCC countries, where declining oil prices are expected to slow growth from 5.3 per cent in 2022 to 3 per cent in 2023, as well as the continued diversion of formal remittances toward informal money transfer channels due to worsening domestic economic conditions, the report said..
Almost 36 per cent of Indias remittances are attributable to the high-skilled and largely high-tech Indian migrants in three high-income destinations (United States, United Kingdom, and Singapore), where the post-pandemic recovery led to a tight labour market and wage hikes that boosted remittances, the report said..
