In a nutshell, remittances is money sent to another party, usually in another country.
Consider India, for instance, around 2.5 million Indians migrate overseas each year for work, which is the highest number of migrants in the world, according to the Times of India.
The people overseas are responsible for sending large amounts of money in another country.
Here is the list of countries sending most remittances abroad:
The US has topped the charts for money transfers overseas, largely due to its permanent home status as the country with the largest immigrant population in the world (45 million as of 2022) for the past 20 years.
Therefore, the nations that benefit most from these flows are typically those with the largest diasporas in the US, such as Mexico, the Philippines, and India.
In a similar vein, the UAE (ranked second with $80 billion sent) has the largest percentage of immigrants of any country in the world, at almost 80% of the total population.
Comparing the nations that send the most money overseas with those that receive it does reveal some general geographic trends.
The largest contributors to developing economies in Asia and Africa are advanced economies in North America and Europe.
Lastly, offshore financial hubs like Luxembourg, the Netherlands, and Switzerland can be utilized as intermediate points in the global money transfer process.
