The country’s remittance inflow will hit a record high of about $16 billion in 2018, said a World Bank report on Saturday.
And this remittance inflow would be an increase of 17.09 percent over last year’s, the report added. Remittance inflow stood at $14.34 billion during the January-November period of this year, up 15.88 percent over the same period of the previous year, according to Bangladesh Bank (BB) data.
The flow was $12.37 billion during the same period in 2017. The remittance movement is going to go up significantly around the world by 10.8 percent, to $528 billion in developing countries in 2018, according to the latest edition of World Bank’s Migration and Development Brief.
Stronger dollar rate against taka and global oil hike contributed greatly to the steady rise, the report mentioned.
However, India has maintained its dominance and topped the list of remittance receiving countries and will fetch a total of $80 billion in 2018 from $69 billion a year earlier.
It was followed by China ($67 billion), the Philippines ($34 billion), Mexico ($34 billion), Egypt ($26 billion), Nigeria ($25.1 billion), Pakistan ($20.9 billion), Ukraine ($16.5), Bangladesh ($15.9 billion) and Vietnam ($15.9 billion).
The remittances to South Asia are expected to go up by 13.5 percent in the current year, which is a faster growth than only 5.7 percent a year ago. The flow is driven up by stronger economic conditions in high-income economies (particularly the United States) in 2018.
Besides, the oil price has increased in October 2018, which had a positive impact on remittance outflows from some GCC countries (such as the United Arab Emirates. As a result, the remittance reported 13 percent growth in outflows in the first half of 2018.
In India, remittances are projected to grow by 15.2 percent in 2018 to $79.5 billion. A flooding disaster in the southern Indian state of Kerala is likely to have boosted remittances, as migrants sent financial help to families back home.
In Pakistan, remittance growth is projected to remain moderate in 2018 (6.2 percent) due to significant declines in inflows from Saudi Arabia (the largest remittance source).
In Bangladesh, remittances are going to show a whopping growth in 2018 (17.9 percent) while Sri Lanka is likely to witness remittance growth of 5.4 percent in 2018, according to report.
For 2019, it is projected that remittances to the region will slow to 4.3 percent due to a moderation of growth in high-income economies and slower migration to the GCC countries, the WB said.
Bank Asia Managing Director and CEO, Md Arfan Ali told Bangladesh Post that the remittance inflow decreased significantly in 2016 and 2017 fiscal years because of oil price hike in global market side by side expatriate workers opting to remit money through informal channels like ‘hundi’.
“The remittance inflow has been in an upward trend since the last several months in the wake of a series of measures taken by the government.”
Ali said, agent banking is doing a very good job by giving door-to-door remittance service, which will encourage expatriates to send their money through formal channels.