The World Bank projected remittance inflows to developing economies at $485bn in 2018, which would constitute an increase of 4.1% from an estimated $466bn in 2017, following a rise of 8.6% in 2017 and a decline of 2.5% in 2016. It attributed the increase in remittance inflows to developing economies to improved global economic activity and financing conditions. Further, it noted that inflows to developing economies would account for 75.5% of global remittance flows in 2018 compared to 76% in 2017. It forecast inflows to the East Asia & Pacific region to reach $135bn and to account for 27.8% of remittance flows to developing economies in 2018, followed by South Asia with $120bn (24.7%), Latin America & the Caribbean with $83bn (17.1%), the Middle East & North Africa (MENA) region with $56bn (11.5%), Europe & Central Asia with $51bn (10.5%) and Sub-Saharan Africa (SSA) with $41bn (8.5%). Also, it projected remittance inflows to SSA to grow by 7% in 2018, followed by Europe & Central Asia (+6%), the MENA region (+4.4%), Latin America & the Caribbean (+4.3%), East Asia & Pacific (+3.8%) and South Asia (+2.5%). The World Bank considered that downside risks to the remittances' outlook consist of sustained de-risking by correspondent banks, heightened policy uncertainties, rising geopolitical tensions, increased restrictions on trade, as well as restrictive migration policies.
Source: World Bank