Remittance flows: new World Bank report

The World Bank reports that remittance flows to developing countries are expected to reach $414 billion in 2013 and $540 billion by 2016 (total world remittances are expected to be $700 in 2016). The only case of decline has been Mexico, due to flat or negative migration to the United States. The average cost of sending remittances is 9%.
Total remittance flows in 2000 were estimated at under $100B, indicating the rapid growth of these flows.
Mexico is ranked as the 4th largest recipient in 2013, at $22B, after India ($71B), China ($60B) and the Philippines ($26B). Mexico’s remittance level is about 2% of its gross domestic product. Showing how much the Philippines is a worker-export economy, its remittance level is about 10% of its GDP.
The report had this to say about Mexico: It is going through a second year of absolute decline in remittances, but the bank expects the volume to return to growth shortly. The average remittance is about $300. Housing starts in the U.S. have been the classic indicator of remittance volume but that is no longer the case.
The unemployment rate of the Hispanic or Latino population in the U.S. declined from 10.1% in August 2012 to 9.2% in August 2013.Employment of foreign-born workers remains more responsive than native-born workers.
Remittance networks in Mexico have been engaged in some competitive price cutting – the report doesn’t describe further.

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