Outlook for Remittance Flows 2010-11 : Remittance Flows to Developing Countries Remained Resilient in 2009, Expected to Recover During 2010-11

Officially recorded remittance flows to developing countries reached $316 billion in 2009, down 6 percent from $336 billion in 2008. With improved prospects for the global economy, remittance flows to developing countries are expected to increase b...

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Bibliographic Details
Main Authors:	Ratha, Dilip, Mohapatra, Sanket, Silwal, Ani
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSENCE OF REMITTANCES ACCESS TO CAPITAL ACCOUNT BALANCE ADVANCED ECONOMIES ASSETS AUTOMATIC TELLER AVERAGE REMITTANCE BALANCE OF PAYMENTS BALANCE OF PAYMENTS STATISTICS BANK ACCOUNTS BANK BRANCHES BANK DEPOSITS BANKING REGULATIONS BENEFICIARY BILL BILL PAYMENTS BILLS BOND BOND RATING BOND SALE BONDS BORROWING BUSINESS CYCLE CAPACITY BUILDING CAPITA INCOME CAPITAL FLOWS CAR LOANS CENTRAL BANK CENTRAL BANKS COMPENSATION OF EMPLOYEES COST OF TRANSFERS COSTS OF TRANSFERS COUNTRY DEBT COUNTRY OF ORIGIN CREDIT ENHANCEMENT CREDIT UNION CREDIT UNIONS CREDITWORTHINESS CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS DATA ON REMITTANCES DEBT DEBT CRISIS DEBT INSTRUMENT DEBT MARKETS DEBT SUSTAINABILITY DEPOSIT DEPOSITS DEPRECIATION DESTINATION COUNTRY DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DIASPORA DISBURSEMENT DIVERSIFICATION DOMESTIC MONEY ECONOMIC CRISIS ECONOMIC DOWNTURNS ECONOMIC GROWTH EMERGING MARKET EMERGING MARKETS EMPLOYER EMPLOYERS EMPLOYMENT SITUATION EQUITY FLOWS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXPATRIATE EXPENDITURE EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FEE INCOME FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INSTRUMENTS FINANCIAL SERVICES FINANCIAL STRESS FISCAL POLICY FOREIGN CURRENCY FOREIGN CURRENCY EARNINGS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTORS FOREIGN WORKERS FUTURE REMITTANCES GLOBAL DEVELOPMENT FINANCE GLOBAL ECONOMY GROSS DOMESTIC PRODUCT GROWTH OF REMITTANCES GROWTH RATE GROWTH RATES HIGH-INCOME COUNTRIES HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLDS HOUSING FINANCE IMPORTANCE OF REMITTANCES INCOME INCOME SHOCKS INCOMES INCREASE IN REMITTANCES INFRASTRUCTURE INVESTMENTS INSTALLMENTS INSTITUTIONAL CAPACITY INSTITUTIONAL CAPACITY BUILDING INSTITUTIONAL INVESTORS INSURANCE INTEREST EARNINGS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL RESERVES INVESTING INVESTMENT OPPORTUNITY INVESTMENT PURPOSES ISSUANCE LABOR MARKETS LABOR MOBILITY LEVERAGE LEVERAGE REMITTANCES LIFE INSURANCE LIMITED ACCESS LOAN LOCAL CURRENCY LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MARKET COMPETITION MARKET PRICES MICROFINANCE MICROFINANCE INSTITUTIONS MIDDLE-INCOME COUNTRIES MIGRANT LABOR MIGRANT REMITTANCE MIGRANT REMITTANCES MIGRANT TRANSFERS MIGRANT WORKER MIGRANT WORKERS MIGRANTS MONEY LAUNDERING MONEY TRANSFER MONEY TRANSFER COMPANIES MONEY TRANSFER OPERATORS MONEY TRANSFERS NATIONAL INCOME NATURAL DISASTER NATURAL DISASTERS OIL EXPORTING COUNTRIES OIL PRICE OIL PRICES POINT-OF-SALE PORTFOLIO PORTFOLIO FLOWS POST OFFICES POST-CRISIS PERIOD POSTAL SAVING PRIVATE CAPITAL PRIVATE CREDITORS PRIVATE DEBT PRIVATE FINANCING PROFIT OPPORTUNITIES PUBLIC EXPENDITURE PUBLIC SPENDING QUOTAS RAPID GROWTH RECIPIENT COUNTRIES REMITTANCE REMITTANCE CHANNELS REMITTANCE COSTS REMITTANCE FLOW REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE MARKET REMITTANCE OUTFLOWS REMITTANCE RECIPIENTS REMITTANCE SENDERS REMITTANCE SERVICE REMITTANCE SERVICE PROVIDERS REMITTANCE SERVICES REMITTANCE TRANSFERS REMITTANCES REMITTANCES FLOWS REMITTANCES FOR INVESTMENT REMITTERS RESERVE RESERVE BANK RESERVES RETURN SAVINGS SAVINGS ACCOUNTS SECURITIES SEND MONEY SEND MONEY HOME SEND REMITTANCE SEND REMITTANCES SETTLEMENT SKILLED WORKERS SLOWDOWN SOCIAL SECURITY SOVEREIGN RATINGS SOVEREIGN RISK STOCK DATA STOCKS SUSTAINABILITY ANALYSIS TAX TRADE DEFICIT TRADE DEFICITS TRANSACTION TRANSACTION COST TRUST FUND UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES VALUATION WIRE TRANSFERS WITHDRAWAL
Online Access:	http://documents.worldbank.org/curated/en/2010/04/13266794/outlook-remittance-flows-2010-11-remittance-flows-developing-countries-remained-resilient-2009-expected-recover-during-2010-11 http://hdl.handle.net/10986/10931

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Summary:	Officially recorded remittance flows to developing countries reached $316 billion in 2009, down 6 percent from $336 billion in 2008. With improved prospects for the global economy, remittance flows to developing countries are expected to increase by 6.2 percent in 2010 and 7.1 percent in 2011, a faster pace of recovery in 2010 than our earlier forecasts. The decline in remittance flows to Latin America that began with the onset of financial crisis in the United States appears to have bottomed out since the last quarter of 2009. Remittance flows to South Asia (and to a smaller extent East Asia) continued to grow in 2009 although at markedly slower pace than in the pre-crisis years. Flows to Europe and Central Asia and Middle-East and North Africa fell more than expected in 2009. These regional trends reveal that: (a) the more diverse the migration destinations, the more resilient are remittances; (b) the lower the barriers to labor mobility, the stronger the link between remittances and economic cycles in that corridor; and (c) exchange rate movements produce valuation effects, but they also influence the consumption-investment motive for remittances. The resilience of remittances during the financial crisis has highlighted their importance in countries facing external financing gaps. Remittances are now being factored into sovereign ratings in middle-income countries and debt sustainability analysis in low-income countries. Countries are also becoming increasingly aware of the income and wealth of overseas diaspora as potential sources of capital. Some countries are showing interest in financial instruments such as diaspora bonds and securitization of future remittances to raise international capital.

Outlook for Remittance Flows 2010-11 : Remittance Flows to Developing Countries Remained Resilient in 2009, Expected to Recover During 2010-11

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