Over recent years, remittance flows - funds sent by people living and working abroad to their home countries - have been increasing rapidly. Today, they represent the largest source of external finance for many developing countries, ahead of Official Development Assistance (ODA) and Foreign Direct Investment (FDI). While private capital mainly flows to emerging countries, remittances are particularly important in poorer countries where they can represent over a third of Gross Domestic Product (GDP). They are also an important contributor to resilience in the face of economic or humanitarian crises.

 

DATA VISUALISATION Remittances as an external finance source to developing countries

ANALYSIS Top 10 recipient countries, 2013-2015 average, % of GDP Source: DAC statistics and World Bank data on remittances

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What place for remittances in the post-2015 framework?, Development Co-operation Report 2014

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How are remittances defined and what do they include?

 

Useful links

• World Development Indicators
• World Bank Remittances Data
• Remittance Prices Worldwide (World Bank)
• Balance of Payment Manual and International Investment Position Manual (BPM6) (pdf)
• Global Remittances Working Group (GRWG)

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