The World Bank said India will receive a remittance of $65.5 billion this year.
Washington:
India, the world's largest remittance recipient in 2015, may receive a remittance of USD 65.5 billion this year, a drop of 5 percent, the World Bank has said in a new report citing weak economic growth in
remittances-source countries and cyclic low oil prices.
"In 2016, remittance flows are expected to decline by 5 percent in India and 3.5 per cent in Bangladesh, whereas they are expected to grow by 5.1 per cent in Pakistan and 1.6 percent in Sri Lanka," the World Bank said in the latest report on remittances.
Despite the drop, India is likely to top the list of countries receiving remittance.
The World Bank said in 2016, India is expected to receive a remittance of USD 65.5 billion, followed by China (USD 65.2 billion).
Pakistan positioned at number five is estimated to receive USD 20.3 billion in 2016.
The World Bank said remittances to South Asia is expected to decline by 2.3 per cent in 2016, following a 1.6 percent decline in 2015.
India retained its top spot in 2015, attracting about USD 69 billion in remittances, the World Bank had said.
Remittances from the Gulf Cooperation Council (GCC) countries continued to decline due to lower oil prices and labour market 'nationalisation' policies in Saudi Arabia.
GCC is an alliance of six Middle Eastern countries- Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
It said against a backdrop of tepid global growth, remittance flows to low and middle-income countries (LMICs) seem to have entered a "new normal" of slow growth.
In 2016, remittance flows to LMICs are projected to reach USD 442 billion, marking an increase of 0.8 percent over 2015.
The modest recovery in 2016 is largely driven by the increase in remittance flows to Latin America and the Caribbean on the back of a stronger economy in the US; by contrast, remittance flows to all other developing regions either declined or recorded a deceleration in growth, the bank said.
The World Bank said low oil prices continued to be a factor in reduced remittance flows from Russia and the GCC countries.
In addition, structural factors have also played a role in dampening remittances growth.
Anti-money laundering efforts have prompted banks to close down accounts of money transfer operators, diverting activity to informal channels, it added.
"Remittances continue to be an important component of the global economy, surpassing international aid. However this "new normal" of weak growth in remittances could present challenges for millions of families that rely heavily on these flows.
"This, in turn, can seriously impact the economies of many countries around the world bringing on a new set of challenges to economic growth," said Mr Augusto Lopez-Claros, Director of the World Bank's Global Indicators Group.
remittances-source countries and cyclic low oil prices.
"In 2016, remittance flows are expected to decline by 5 percent in India and 3.5 per cent in Bangladesh, whereas they are expected to grow by 5.1 per cent in Pakistan and 1.6 percent in Sri Lanka," the World Bank said in the latest report on remittances.
Despite the drop, India is likely to top the list of countries receiving remittance.
The World Bank said in 2016, India is expected to receive a remittance of USD 65.5 billion, followed by China (USD 65.2 billion).
Pakistan positioned at number five is estimated to receive USD 20.3 billion in 2016.
The World Bank said remittances to South Asia is expected to decline by 2.3 per cent in 2016, following a 1.6 percent decline in 2015.
India retained its top spot in 2015, attracting about USD 69 billion in remittances, the World Bank had said.
Remittances from the Gulf Cooperation Council (GCC) countries continued to decline due to lower oil prices and labour market 'nationalisation' policies in Saudi Arabia.
GCC is an alliance of six Middle Eastern countries- Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
It said against a backdrop of tepid global growth, remittance flows to low and middle-income countries (LMICs) seem to have entered a "new normal" of slow growth.
In 2016, remittance flows to LMICs are projected to reach USD 442 billion, marking an increase of 0.8 percent over 2015.
The modest recovery in 2016 is largely driven by the increase in remittance flows to Latin America and the Caribbean on the back of a stronger economy in the US; by contrast, remittance flows to all other developing regions either declined or recorded a deceleration in growth, the bank said.
The World Bank said low oil prices continued to be a factor in reduced remittance flows from Russia and the GCC countries.
In addition, structural factors have also played a role in dampening remittances growth.
Anti-money laundering efforts have prompted banks to close down accounts of money transfer operators, diverting activity to informal channels, it added.
"Remittances continue to be an important component of the global economy, surpassing international aid. However this "new normal" of weak growth in remittances could present challenges for millions of families that rely heavily on these flows.
"This, in turn, can seriously impact the economies of many countries around the world bringing on a new set of challenges to economic growth," said Mr Augusto Lopez-Claros, Director of the World Bank's Global Indicators Group.
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