{"id":749,"date":"2021-03-01T15:48:34","date_gmt":"2021-03-01T15:48:34","guid":{"rendered":"http:\/\/rethink-quarterly.local\/?p=749"},"modified":"2024-09-03T22:28:20","modified_gmt":"2024-09-03T21:28:20","slug":"story-of-global-remittances-in-6-charts","status":"publish","type":"post","link":"https:\/\/rethinkq.adp.com\/story-of-global-remittances-in-6-charts\/","title":{"rendered":"The story of global remittances in 6 charts"},"content":{"rendered":"\n<header class=\"entry-header bg-adp-tan block--article-header alignfull block--article-header\" >\n\n  \n\n<figure class=\"wp-block-image size-large entry--image\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1-1024x576.png\" alt=\"\" class=\"wp-image-748\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1-1024x576.png 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1-300x169.png 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1-768x432.png 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1-1536x864.png 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/header_contributer-4-1.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-group entry--title-wrapper\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><div class=\"entry--social-share\">\n  <ul>\n    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/rethinkq.adp.com\/story-of-global-remittances-in-6-charts\/&#038;t=The story of global remittances in 6 charts\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/facebook.svg\" alt=\"Facebook logo - click to share this article on Facebook\"><\/a><\/li>\n    <li><a href=\"http:\/\/twitter.com\/share?text=The story of global remittances in 6 charts&#038;url=https:\/\/rethinkq.adp.com\/story-of-global-remittances-in-6-charts\/\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/twitter.svg\" alt=\"Twitter logo - click to share this article on Twitter\"><\/a><\/li>\n    <li><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Frethinkq.adp.com%2Fstory-of-global-remittances-in-6-charts%2F\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/linkedin.svg\" alt=\"LinkedIn logo - click to share this article on Facebook\"><\/a><\/li>\n  <\/ul>\n<\/div>\n\n            <a class=\"entry--tag tag-style\" href=\"https:\/\/rethinkq.adp.com\/time-for-universal-basic-income\/\">Features<\/a>\n\n        \n  <h1 class=\"entry-title\">The story of global remittances in 6 charts<\/h1>\n\n\n<p class=\"is-style-summary-style\">The money that people working far from home send back to their families \u2014 remittances \u2014 makes a big difference, especially in times of crisis.&nbsp;<\/p>\n<\/div><\/div>\n\n\n  <div class=\"entry--meta content-width\">\n           <p class=\"authors\">By\n                        <a href=\"https:\/\/rethinkq.adp.com\/author\/grace-dobush\/\">Grace Dobush<\/a>\n\n             \n          and                <a href=\"https:\/\/rethinkq.adp.com\/author\/duncan-geere\/\">Duncan Geere<\/a>\n\n             \n         \n     <\/p>\n    \n  \n  <p>1 March 2021  <span class=\"desktop-only\">\u2014<\/span> <a href=\"https:\/\/rethinkq.adp.com\/issue-1-lifelines\/\">Issue 1: Lifelines<\/a> \n  <\/div><!-- .entry-meta -->\n\n<\/header><!-- .entry-header -->\n\t<div class=\"entry-content content-width\">\n\n\n\n<p>In 2020, about&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.un.org\/development\/desa\/pd\/news\/international-migration-2020\" target=\"_blank\">281 million people<\/a>&nbsp;lived in a country other than the one in which they were born.&nbsp;If international migrants formed a single country, it would be the fourth-largest in the world. The number of migrants has been rising steadily for years, but it dropped for the first time in decades during the pandemic, as some workers returned home by choice or by necessity.&nbsp;<\/p>\n\n\n\n<p>Accordingly, remittances \u2014 money sent home by immigrants out of their own paychecks \u2014 were also predicted to drop in 2020 after years of growth. In the pandemic, \u201cmigrants have gotten the worst end of things,\u201d says&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.maastrichtuniversity.nl\/melissa.siegel\" target=\"_blank\">Melissa Siegel<\/a>, a professor of migration studies at Maastricht University. \u201cMigrants are often in sectors that are the hardest hit by a recession. And on top of that, a lot of migrant workers have been hard hit by the virus itself.\u201d&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Worldwide flows of money in 2019<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"flourish-embed flourish-chord\" data-src=\"visualisation\/5000803\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<\/div><\/div>\n\n\n\n<p>Global remittances topped $717 billion in 2019, a record high. But the&nbsp;<a href=\"https:\/\/www.knomad.org\/sites\/default\/files\/2020-11\/Migration%20%26%20Development_Brief%2033.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">World Bank<\/a>&nbsp;estimated the pandemic and recession would cut those flows by about 7% in 2020 and again by 7% by the end of 2021, with low-income countries in South Asia taking the biggest hit.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The pandemic effect<\/h2>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/5003214\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<\/div><\/div>\n\n\n\n<p>And yet, some countries are reporting record levels of remittances in 2020.&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.reuters.com\/article\/uk-kenya-economy-idUSKBN29K19R\" target=\"_blank\">Kenya<\/a>&nbsp;reported total inflows of $3.1 billion, up 11% over the previous year.&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.forbes.com.mx\/economia-remesas-11-4-en-2020-nuevo-record\/#:~:text=Durante%20el%20%C3%BAltimo%20mes%20de,Heath%2C%20un%20subgobernador%20de%20Banxico.\" target=\"_blank\">Mexico<\/a>&nbsp;also recorded a record $40.6 billion in remittances in 2020, an increase of more than 11% from 2019.&nbsp;<\/p>\n\n\n\n<p>As final numbers for 2020 come in, it\u2019s difficult to say whether remittances are really on the rise or we\u2019ve just gotten better at recording them. There\u2019s also often a spike in money transfers during crises. \u201cRemittances can increase in times of crisis because people might use formal channels, but also migrants might be preparing for their own return, transferring more savings home,\u201d Siegel says.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The biggest players in remittances<\/h2>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"flourish-embed flourish-hierarchy\" data-src=\"visualisation\/5077721\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<\/div><\/div>\n\n\n\n<p>The changes in flows of remittances reflect the geopolitical changes in the world. The United States has been the top sender of remittances for decades, but the United Arab Emirates jumped to the No. 2 spot after the financial crisis of 2008. India and China have topped the list of biggest receivers since around 2005.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Top remittance receivers<\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><img decoding=\"async\" width=\"1024\" height=\"1003\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Inflows-Line-Chart-Race-Remittance-3-2048x2005-1-1024x1003.png\" alt=\"\" class=\"wp-image-753\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Inflows-Line-Chart-Race-Remittance-3-2048x2005-1-1024x1003.png 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Inflows-Line-Chart-Race-Remittance-3-2048x2005-1-300x294.png 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Inflows-Line-Chart-Race-Remittance-3-2048x2005-1-1536x1504.png 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Inflows-Line-Chart-Race-Remittance-3-2048x2005-1.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Top remittance senders<\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><img decoding=\"async\" width=\"1024\" height=\"966\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Outflows-Line-Chart-Race-Remittance-3-2048x1931-1-1024x966.png\" alt=\"\" class=\"wp-image-754\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Outflows-Line-Chart-Race-Remittance-3-2048x1931-1-1024x966.png 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Outflows-Line-Chart-Race-Remittance-3-2048x1931-1-300x283.png 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Outflows-Line-Chart-Race-Remittance-3-2048x1931-1-1536x1448.png 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/Shorter-Outflows-Line-Chart-Race-Remittance-3-2048x1931-1.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Remittances are often vitally important to recipient countries, and in total have outpaced international development aid since the 1990s. In Haiti, Lebanon and South Sudan, for example, remittances account for more than one-third of total GDP.&nbsp; Unlike development aid, remittances go straight to the people, funding businesses, paying for schooling and ensuring the survival of entire families in some cases.&nbsp;<\/p>\n\n\n\n<p>\u201cRemittances are much better at targeting those who need them the most,\u201d Siegel says. \u201cThey are extremely important for those who stay behind. Remittances reduce the depth and severity of poverty, and can eliminate poverty.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Remittances are growing far faster than aid<\/h2>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/5002827\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<\/div><\/div>\n\n\n\n<p>Thanks to mobile banking services, sending money around the world is cheaper, faster and easier than ever before. But the options and their costs vary widely&nbsp;<a href=\"https:\/\/rethinkq.adp.com\/how-money-moves-around-the-world\/?\">depending on the region<\/a>. The U.N. wants to get remittance fees down to 3% by 2030. And the average cost to send money to low- and middle-income countries has dropped to 7%, but the cost in Africa remains higher than anywhere else, about 9%.<\/p>\n\n\n\n<p>When it comes down to it, remittances show the power of the paycheck.&nbsp;<a href=\"https:\/\/carlsonschool.umn.edu\/faculty\/paul-vaaler\">Paul Vaaler<\/a>, a professor at the University of Minnesota\u2019s law and business schools, calls remittances essentially \u201cventure capital running from migrants abroad to their extended family and local community recipients back home.\u201d Even small amounts of money can make a big difference.&nbsp;<\/p>\n\n\n<div class=\"block--author\">      <div class=\"block-author__inner\">\n        <div class=\"author--image\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/grace-dobush\/\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/profile_Grace-298x305.jpeg\" alt=\"\" \/><\/a>\n                  <\/div>\n        <div class=\"author--info\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/grace-dobush\/\" class=\"author--name\">Grace Dobush<\/a>\n\n          \n          <p>Based in Berlin, Grace Dobush is the editor of the ReThink Quarterly. She has written for publications including Fortune, Wired, Handelsblatt and Quartz.<\/p>\n          <div class=\"block--author-social\"><ul class=\"author--socials\"><li><a href=\"https:\/\/twitter.com\/GraceDobushToGo\" title=\"Twitter\" target=\"_blank\"><i class=\"fab fa-twitter-square\"><\/i><\/a><\/li><li><a href=\"https:\/\/www.linkedin.com\/in\/gracedobush\/\" title=\"LinkedIn\" target=\"_blank\"><i class=\"fab fa-linkedin\"><\/i><\/a><\/li><li><a href=\"https:\/\/gracedobush.com\/\" title=\"Author Website\" target=\"_blank\"><i class=\"fas fa-globe\"><\/i><\/a><\/li><\/ul><\/div>\n        <\/div>\n      <\/div>\n       <\/div>\n\n<div class=\"block--author\">      <div class=\"block-author__inner\">\n        <div class=\"author--image\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/duncan-geere\/\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/profile_duncan-298x305.jpeg\" alt=\"\" \/><\/a>\n                  <\/div>\n        <div class=\"author--info\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/duncan-geere\/\" class=\"author--name\">Duncan Geere<\/a>\n\n          \n          <p>Based in Gothenburg, Sweden, Duncan Geere is an information designer interested in climate and the environment. He\u2019s worked for organizations like Wired, Information is Beautiful, Project Drawdown, Nesta, the Gates Foundation, and BBC Wildlife magazine.<\/p>\n          <div class=\"block--author-social\"><ul class=\"author--socials\"><li><a href=\"https:\/\/www.duncangeere.com\/\" title=\"Author Website\" target=\"_blank\"><i class=\"fas fa-globe\"><\/i><\/a><\/li><\/ul><\/div>\n        <\/div>\n      <\/div>\n       <\/div>\n\n<div class=\"block--recommended-content alignwide is-style-bg-adp-tan\"><div class=\"block-recommended-content__inner\">\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/remittances-from-hong-kong-to-the-philippines\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/manson-yim-Pol02tswjms-unsplash-1-1084x576.jpeg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">The \u2018modern-day heroes\u2019 funding Filipino families<\/span>\n          <p>More than 120,000 Filipinos work in Hong Kong, primarily as household help. The money they earn abroad is essential for their families\u2019 futures. Their biggest investment? Education.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/from-ukraine-with-love\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/10\/2J20BJG-web-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">From Ukraine, with love\u00a0<\/span>\n          <p>In an uncertain time, Poland \u2014\u00a0and its labor market \u2014 is welcoming Ukrainian refugees with open arms.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/back-way-the-gambia-to-germany\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/gambia-banj-1084x576.jpeg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">The back way from the Gambia to Germany<\/span>\n          <p>With agriculture on the decline and tourism hit hard by the pandemic, remittances sent from the Gambian diaspora are more important than ever. One man risked his life to make it to Germany via the Mediterranean.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n<\/div><\/div>\n\n\n<section class=\"wp-block-group alignfull section--sign-up has-background\" style=\"background-color:#7967ae\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center is-style-default has-white-color has-text-color has-large-font-size\"><a href=\"\/sign-up\/\">Sign up<\/a> to keep up to date with ReThink Q.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>The money that people working far from home send back to their families \u2014 remittances \u2014 makes a big difference, especially in times of crisis.\u00a0<\/p>\n","protected":false},"author":4,"featured_media":748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[116,114,117],"tags":[98,75,89,101,90],"coauthors":[24,25],"class_list":["post-749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-infographics","category-remittances","tag-global-economy","tag-infographics","tag-migration","tag-money-transfer","tag-remittances","issue-issue-1-lifelines"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - 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