Friday, March 29, 2024

Global Remittances To reach US$5.4tn By 2030 —IFAD

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Global remittances are expected to increase to an all-time high of $5.4trillion by 2030, according to the report MobileRemit Africa launched by the International Fund for Agricultural Development (IFAD).

The report said remittances which are hard-earned money sent by migrant workers to their family members in low- and middle-income countries (LMICs), grew by 8.6% in 2021 despite predictions that the COVID-19 pandemic would reduce remittance flows, the momentum was sustained due to a 48% increase in money sent through mobile channels.

Remittances flow (US$605 billion) more than three times the total amount of international official development assistance (US$178.6 billion).

The report also said money sent home by over 200 million migrant workers around the world this year will likely reach US$630 billion, providing a lifeline for more than 800 million family members.

The aggregated flows of family remittances to LMICs are expected to reach US$5.4 trillion by 2030, an equivalence to twice the GDP of Africa in 2021 with upward trend of remittances growth likely to moderate in 2022 as inflation erodes wages as pandemic-related support programmes end in rich countries.

The war in Ukraine according to the report is expected to impact global figures as it triggers a sharp decline in transfers to Russia’s neighbouring countries, where remittances can account for as much as 30 per cent of their GDP.