The World Bank anticipates that remittance growth will cease in 2023. Experts predict that this will be noticeable in Europe and Central Asia.
Remittances in countries with low or middle incomes will fall 1.4% to $656bn in 2023, notes World Bank's (WB) in its latest prediction.
This has been due to a slowdown in economic activity in the remittances' source countries, which, according to analysts, will limit wage growth and migrant employment.
All regions are anticipated to slow, although Europe and Central Asia (1% respectively) and South Asia (0.3%) are expected to slow the most.
"Growth in remittances in Europe and Central Asia is slowing due to the high base effect and the weakening of the ruble against the US dollar," the forecast adds.
Growth rates were substantially greater in 2022, with remittances to these nations increasing by 8% to $647bn. High oil prices in the Gulf countries, big transfers from Russia to Central Asia, and a healthy labour market in the US all contributed to significant remittances.
Remittance inflows to Europe and Central Asia reached a new high last year in 2022, increasing 19% to $79bn. The majority of these transfers came from Russia, and the Russian army's invasion of Ukraine had no effect on development, reports the World Bank.
The flow of Russian remittances also increased foreign exchange reserves and international investment in Armenia, Georgia, and Uzbekistan.
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