Resilient Global Remittance Industry: Recovery, Regional Variances, and Market Dynamics Post-COVID

NEW YORK - June 9, 2023 - PRLog -- The global remittance industry showed strength before the pandemic and remained robust in 2020, with a minor decline in some developing economies. The East Asia and Pacific region initially suffered but started recovering in 2021. Low and middle-income countries remained strong with a slight decline.

In 2020, remittance flows reached $540 billion, just 1.6% lower than 2019. This decrease was much less than predicted and the drop experienced during the 2008 financial crisis. The US, UAE, and Saudi Arabia were the top three sources of remittance outflows in 2020. However, the average cost of delivering $200 to LMICs remained high at 6.58%, exceeding the Sustainable Development Goals' target.

Latin America, the Caribbean, South Asia, the Middle East, and North Africa experienced increased remittance inflows, while East Asia, Europe, Central Asia, and Sub-Saharan Africa witnessed declines. South Asia received $147 billion in inward remittances in 2020, driven by transfers to Bangladesh and Pakistan. Despite a decrease in outbound migrant workers due to the pandemic, inbound migrant workers increased.

In 2021, India, China, Mexico, the Philippines, and Egypt were the top five recipients of remittances. Remittances to low- and middle-income countries were projected to increase by 7.3%, reaching $589 billion, demonstrating strong recovery compared to previous estimates.

Latin America and the Caribbean stood out as the top-performing region in 2021, benefitting from economic rebound and remittances to migrants in transit. East Asia and the Pacific saw a negative growth rate of -4.03% in remittance flows. Higher oil prices boosted remittances from the Gulf Cooperation Council countries, leading to a 4.6% increase in remittances to India.

The remittance market is dominated by banks, NBFI/MTOs, and other players, with MTOs holding a significant market share. The industry is highly competitive due to increased demand for online transactions and mobile apps. Major players include JP Morgan Chase, Citi-Group, Western Union, and Euronet Worldwide.

Over the past 20 years, the UAE and Kuwait have witnessed increased outward remittances. The US has consistently been the largest provider of outward remittances, except for 2020 when it experienced a temporary decline. The market analysis is based on the "Global Money Remittances Market and Forecast to 2027" report by Makreo Research and Consulting Firm, covering industry dynamics, market size, and segmentation."

Global Money Remittance Market Analysis and Forecast (2016-2027 (https://www.makreo.com/report/global-money-remittance-mar...)