Synoptic Revision - Remittances and Economic Development - Micro and Macro Effects
Last updated 11 Jun 2022
For many low and middle income countries, remittances are a very significant injection of income in their circular flow. This short video approaches remittances from a synoptic perspective.
In 2021, remittance flows to low- and middle-income countries (LMICs) reached $589 billion in 2021, a 7 percent increase over 2020. Remittances are more than threefold above official development assistance (aid) and, excluding China, more than 50 percent higher than foreign direct investment.
The top five recipient countries for remittances in 2021 were India, Mexico, China, the Philippines, and Egypt. Among economies where remittance inflows stand at very high shares of GDP are Lebanon (54 percent), Tonga (44 percent), Tajikistan (34 percent), and Samoa (32 percent).