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Again rise in inflow of remittances to Nepal

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News item 16-3-2008

The flow of remittances rose by 18 per cent in Nepal, during the first half of current fiscal year and touched the total amount to Rs 57 billion as of mid-January. Nepal had received Rs 48.26 billion during the same period last year. Similarly, the largest remittance-recipient developing country India’s private current transfers grew by 30 per cent in the first half of 2007. According to a report -Remittance Trends 2007, the flow of remittance globally continues with a robust growth with developing countries taking lead as major recipients. The growth of remittances to developing countries remains robust because of strong growth in Europe and Asia. The worldwide flows of remittances are expected to reach $318 billion in 2007. Of the total amount, remittances sent home by migrants from developing countries are expected to exceed $240 billion in 2007, up from $221 billion in 2006 and more than double the level reached in 2002. This amount reflects only officially recorded transfers-the actual amount including unrecorded flows through formal and informal channels is believed to be significantly larger, states the report. Money sent in home by millions of migrant workers worldwide has already outstripped the global development aid and for many countries, remittances are larger than foreign direct investment (FDI), and in some cases, larger even than official development aid. The report further states that the recorded remittances are more than twice as large as official aid and nearly two-third of FDI flows to developing countries. Remittances are the largest source of external financing in many poor countries. Also remittances have been less volatile than other sources of foreign exchange earnings in developing countries.

The remittance flows to Europe and Central Asia have registered the highest growth rate among six developing regions, mostly due to upward revision of data in some countries. As a share of GDP, remittances are the highest in the Middle East and North Africa region. The remittance flows to Sub-Saharan Africa are grossly underestimated, with wide gaps in data reporting in many countries. In 2007, India, Mexico and China are top three recipients of remittances, accounting for nearly one-third of remittances received by the developing countries
 

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5 years International Money Express (14-6-2007)


 

 

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