25 November 2012

Ethiopia: Developing Countries to Receive Close to Half a Trillion Dollars in Remittance

Remittance flows to the developing world is expected to reach 406 billion dollars in 2012, showing 6.5pc increment from the previous year, according to a new World Bank brief on global migration and remittances. The bank also said remittance flows to developing countries are projected to grow by 7.9pc in 2013 and 10.1pc in 2014 to reach 534 billion dollars in 2015.

Remittance flow in Ethiopia significantly increased in the past couple of years and expected to grow more than 50pc in the next three years, according to the World Bank, The National Bank of Ethiopia (NBE) reported last year that official receipt of remittance to the country reached to 1.5 billion dollars, by registering a 88pc increase over its value in the previous year.

However, an international organisations such as the World Bank assessment has always put the figure above the country's foreign exchange earnings, accounting for informal channels.

The top precipitants of officially recorded remittance for 2012 areIndiawith 70 billion dollars followed byChinaandPhilippines, with remittance flow of 66 billion and 24 billion dollars, respectively. Wold wide remittance, including those to high income countries, are also expected to reach 534 billion dollars in 2012, and projected to grow to 685 billion dollars in 2015, according to the latest issue of the Bank's Migration and Development Brief, released last week.

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