Remittances to developing countries to see increase
In 2008, when the world faced an economic meltdown, the remittance industry remained resilient and since 2010, the remittance industry has posted a positive 3.8% year-on-year growth.
The latest World Bank report states that remittance growth to emerging markets has slowed in 2016 but has continued to hold its own for the year even in the face of market uncertainty.
Remittances to low and middle-income countries (LMICs) are projected to hit $442 billion in 2016 – an increase of 0.8% over the previous year. Remittance outflows from the MENA region are also expected to edge ahead by 1.6% for 2016 year despite cyclically low oil prices.
The remittance industry is one of the few industries that has posted nominal growth despite gloomy economic data. For instance, container traffic – considered a proxy for trade growth – has flat lined in 2016, with 10 of the world’s top 30 ports reporting a decline in traffic.
Similarly, the World Trade Organisation (WTO) is estimating that global trade growth is at its lowest levels since the financial crisis in 2009.3 Global retail too is being hit, despite low oil prices reducing goods manufacture and transport costs. ■