WB: Remittances will hit new record in 2017

On April 23, the World Bank (WB) released a report showing remittances in 2017 reached a new record, but the cost of remittances increased significantly. This is a paradox that, according to the World Bank, the authorities need to consider and take measures to simplify administrative procedures to reduce the cost of remittances, helping the recipient get more money.

The World Bank estimates that in 2017, the amount of remittances to low- and middle-income countries reached $ 466 billion, up 8.5% from the previous year. In 2018, this increase is forecast at 4%. India is the world's largest recipient of remittances with $ 69 billion, followed by China ($ 64 billion), the Philippines ($ 33 ​​billion), Mexico ($ 31 billion), Nigeria ($ 22 billion), and Egypt ($ 20 billion). Regarding the region, Europe and Central Asia had the largest increase in remittances in 2017, up 21% while South Africa's sub Saharan Africa increased by 11%. The WB noted in the first quarter of 2018, the average global remittance fee was 7.5% for remittances of $ 200. South Africa's sub Saharan region is home to the most expensive transfer fee, with an average fee of 9.4%. Given this fact, the World Bank calls on governments, research institutes and development agencies to simplify procedures to reduce costs, including leveraging technology.