International Migration and Remittances

Choose the Correct Answer

Correct Answer : Option d

Explanation
The World Bank's latest Migration and Development Brief reveals a continuing growth in remittance flows to low- and middle-income countries (LMICs) in 2023, albeit at a slower pace compared to previous years. According to the World Bank, the report highlights India's significant position as the top remittance recipient, drawing attention to the evolving dynamics in the remittance landscape. Remittances to LMICs grew by an estimated 3.8 per cent in 2023, reaching a total of USD669 billion.

Statement 1 is correct: The report suggests that remittances have surpassed the sum of foreign direct investment and official development assistance in recent years, presenting opportunities for private capital mobilization.

statement 2 is correct: The report suggests a potential risk of a decline in real income for migrants in 2024 due to global inflation and low growth prospects. The expectation of weaker economic activity in several high-income countries and the prospect of weaker job markets may soften the growth of remittances to LMICs, projecting a 3.1 per cent increase in 2024.The need for caution is emphasized, considering volatile oil prices, currency exchange rates, and the possibility of a deeper-than-expected economic downturn in high-income countries

Statement 3 is correct: The report highlights India's significant position as the top remittance recipient, drawing attention to the evolving dynamics in the remittance landscape. In the South Asian region, remittance flows to India experienced notable growth, contributing to the overall positive trend. The top five recipient countries for remittances in 2024 are India, with an estimated inflow of $129 billion, followed by Mexico ($68 billion), China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion).