Remittances from the U.S. to other countries continue to grow. And new Feb 2013 regulations on remittances, created out of the Dodd-Frank Act, seek to impose better controls to protect the sender.
The Congressional Budget Office estimated in 2011 that in 2009 remittances from the United States to other countries totaled more than $48 billion, nearly 30 percent more in inflation-adjusted terms than they were in 2000. This outflow is over 10% of total worldwide remittances. According to the Economist, remittances from the U.S. make up about 15% of the total GDP of Haiti, El Salvador and Honduras. It appears that about 2% of Mexico’s GDP is remittances from the U.S.
In 2009, such remittances from the United States to other countries totaled more than $48 billion, nearly 30 percent more in inflation-adjusted terms than they were in 2000. People in Mexico receive more of the remittances sent from the United States than do residents of any other country.
CBO 2011 report excerpts:
Of the $48 billion in remittances in 20098, nearly $38 billion of that amount was personal transfers by foreign-born residents in the United States to households abroad. The rest, about $11 billion, reflected the compensation of employees who were in the United States for less than a year.
Here are excerpts from a late 2012 report by the World Bank on remittances, which includes a summary of new U.S. remittance rules effective 2/7/13.
Overview of World Bank report
Officially recorded remittance flows to developing countries are estimated to reach $406 billion in 2012, a growth of 6.5 percent over the previous year. These flows are expected to rise 8% in 2013 and 10% in 2014 to reach $534 billion in 2015.
Remittance costs are still too high, averaging 7.5% in top 20 remittance corridors; the worldwide average cost is about 9%.
US Remittance Transfer Rule, to be implemented in February 2013, will increase transparency for consumers and thereby market competition.
Facts about remittance flows
Officially recorded remittances to developing countries are expected to reach $406 billion in 2012, up by 6.5% from $381 billion in 2011(figure 1 and table 1). The true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger. Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance.
The top recipients of remittances in 2012 are India ($70 billion), China ($66 billion), the Philippines ($24 billion), Mexico ($24 billion), and Nigeria ($21 billion).
Continue reading "Remittances from the United States: big, getter fairer" »
Posted by pfr at
E-mail this post