Remittances to low and middle income countries (LMIC) are expected to grow by 1.4 per cent to reach $656 billion in 2023, following a remarkable 8.0 per cent growth in 2022 and 10.6 per cent in 2021.
In its latest Migration and Development Brief, the World Bank cited softening economic activity in remittance source counties resulting in reduced employment and wage gains for migrants as the main reason for the slowdown. Besides economic growth and the employment levels of foreign workers, the other two variables that affect remittance flows are oil prices, especially in the GCC countries and Russia, as well as the exchange rates of local currencies with respect to the US dollar.
Read More : Global Remittance Growth Expected to Moderate, says World Bank