World Bank Reports that Remittances to India to decline by 5% in 2016

India, the world’s largest remittance recipient in 2015, may receive a remittance of $65.5 billion this year, a drop of 5 per cent, the World Bank has said in a new report citing weak economic growth in remittances-source countries and cyclic low oil prices. 

“In 2016, remittance flows are expected to decline by 5 per cent in India and 3.5 per cent in Bangladesh, whereas they are expected to grow by 5.1 per cent in Pakistan and 1.6 per cent in Sri Lanka,” the World Bank said in a latest report on remittances. 

Despite the drop, India is likely to top the list of countries receiving remittance. 

The World Bank said, in 2016, India is expected to receive a remittance of $65.5 billion, followed by China ($65.2 billion). Pakistan positioned at number five is estimated to receive $20.3 billion in 2016.

The World Bank said remittances to South Asia is expected to decline by 2.3 per cent in 2016, following a 1.6 per cent decline in 2015. 

This is attributed mainly due to weak economic growth in remittances-source countries and cyclic low oil prices. 

India retained its top spot in 2015, attracting about USD 69 billion in remittances, the World Bank had said. 

Remittances from the GCC countries continued to decline due to lower oil prices and labour market ‘nationalisation’ policies in Saudi Arabia. 

Gulf Cooperation Council (GCC) is an alliance of six Middle Eastern countries—Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman