WASHINGTON—Global remittances are expected to total $702 billion in 2020, down from $719 billion in 2019 (-2.4%). Of that total, $540 billion is expected to have flowed into low and middle-income countries, down from $548 billion (-1.6%), according to new World Bank data.
While total remittance inflow was down, some countries saw substantial increases in volumes during the pandemic crisis. Among them are Mexico, the third-biggest remittance recipient in the world, as well as Egypt, Pakistan and Bangladesh, which rank as global numbers five, six and eight. Among developing nations, India and the Philippines had some of the smallest losses in 2020 compared to 2019, at 0.2% and 0.7%, respectively, the World Economic Forum stated in its analysis.
Developed countries, such as France and Germany, remained in the top 10, but remittance inflows are typically less important to their economies.
Remittances made up less than 1% of GDP in the two European countries, as well as in China, in 2020. In the rest of the top 10, the number ranged from 3% to almost 10%, the highest shares being exhibited by Pakistan (9.9%) and the Philippines (9.6%).