Overseas remittances to fall 5 per cent to $290 billion in 2009: World Bank

25 March 2009

Remittances by expatriate workers to their home countries will fall by almost 5 per cent to $290 billion in 2009, from last year's high of $305 billion, as the global downturn raises the prospect of job losses, anti-migrant sentiment and even violence around the world, according to a World Bank study.

Even with the drop of between 5 and 8 per cent, remittances will still outstrip private capital flows, expected to fall by half in 2009, and official development aid, typically around $100 billion, the study noted.

''Remittance flows will stay ''resilient'' because many countries have a well-established ''stock'' of migrants who are unlikely to leave their adopted countries. They will continue to send money home, even if they have to reduce the amount they send,'' says Dilip Ratha, who leads the World Bank's migration and remittances team.

Top 5 Recipients of Remittances in 2008

India:             $45 billion
China:            $34 billion
Mexico:         $26 billion
Philippines:    $18 billion
Poland:          $11 billion

Although newspapers reports speak of large numbers of migrants returning home, migrant workers are still moving to destination countries, although at a slower pace. They, too, will add to the flow of remittances, says Ratha.