The World Bank released their latest remittance estimates which show that officially recorded remittance flows to developing countries reached $316 billion in 2009, down 6 percent from $336 billion in 2008. This is attributable to the financial crisis though the effects were less than first anticipated, highlighting the importance of remittances to consumers. Further the World Bank estimates gowth rates of 6.2% and 7.1% in 2010 and 2011 respectively.

Check out the World Bank Brief at https://blogs.worldbank.org/peoplemove/remittance-flows-to-developing-countries-remained-resilient-in-2009-expected-to-recover-during-2010.

Other notable conclusions in the paper are:

  • The more diverse the migration destinations, the more resilient are remittances
  • The lower the barriers to labor mobility, the stronger the link between remittances and economic cycles in that corridor
  • Exchange rate movements produce valuation effects, but they also influence the consumption-investment motive for remittances.