The PHILIPPINES had the fourth highest levels of remittances among low- and middle-income countries (LMICs) this year,flAbout $40.2 billion, the World Bank said.
The bank said its rate is highest in India ($129 billion), Mexico ($68 billion), and China ($48 billion). Pakistan ($33 billion) is set fiveh.
“In micro economies, income represents the largest shares of gross domestic product (GDP), highlighting the importance of remittances to finance the current account and fiskin shortage,” the World Bank said in a blog post published on December 18.
It said officially recorded remittances to LMICs are expected to reach $685 billion by 2024, an increase of 5.8%.
However, the World Bank said this may be underestimated due to the volume of remittances made through informal channels.
Remittances to the Philippines are greater than foreign direct investment (FDI) and official development assistance, the bank said.
“The gap between remittances and FDI is expected to widen further in 2024,” he said.
It also said that in the last decade, remittances have increased by 57% and FDI has decreased by 41%.
The World Bank said remittances are expected to continue to grow due to “significant migration pressures driven by demographic trends, income gaps and climate change.”
It also urged countries to find ways to use remittances to reduce poverty, finance health and education, bring about financial inclusion, and improve access to capital markets for public and non-governmental companies.
The World Bank said the estimated $40.23 billion in revenue is equivalent to 8.5% of GDP by 2024.
For East Asia and the Pacific region, remittances flfor low- and middle-income regions increased by 0.74% to $136 billion in 2023. – Aubrey Rose A. Inosante
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