Remittances to and Economic Growth in Bangladesh – An Overview

Bangladesh is one of the under-developed countries that have started progressing. One of the key factors helping the country’s economic growth is the remittances by expatriates. Remittances transferred to Bangladesh are the money earned by Bengali workers sent to their loved ones in the origin country. Online money transfer to Bangladesh is one of the most important economic variables for the country.

In Bangladesh, remittances have made the country flourish by positively impacting financial growth, ensuring the balance of payments, enhancing national savings, increasing foreign exchange reserves, and increasing money trade. Moreover, it provides excellent economic value for the country and is better than foreign aid.

The Growth of Migrants Giving Rise to the Growing International Remittances in Bangladesh

Since 1980, the increased economic pursuit has led to Bangladesh’s brisk international demand for a workforce, which has boosted the country’s economic value. This has also opened up earning opportunities for Bangladeshi expatriates. Eventually, the inflows of remittances also increased, making it a welcoming factor for its economic development.

Many Bengalis who had left their families in their home countries sent money to their loved ones either for personal or business purposes. Consequently, it gave rise to the export earnings of Bangladesh.

Remittance Industry of Bangladesh

For about two decades, remittances have been contributing to the growth of Bangladesh by a whopping 35% of the export earnings. It is a more incredible help than foreign aid as it lessens the factor of dependency of the country on external sources of financial support. The momentum by which Bangladeshi migrants send money to Bangladesh has made the remittance industry the second largest industry after the garment sector. But the garment industry also requires cost-effective export if the cost of imported raw materials is deducted from the garment sector. The remittance sector eventually became the most prominent foreign earnings industry of Bangladesh. 

As a parallel development to the outward growth through remittances, a rise in the inward remittance industry has also partaken the country, contributing significantly to becoming a substantial source towards the economy of Bangladesh. In recent times, statistics show that remittances are helping a third-world country like Bangladesh get back on its feet.

Facts and Figures of Bangladeshi Remittance Industry

The World Bank presented the statistics for 165 countries that including Bangladesh the 43rd number in the remittance industry. The data demonstrates the statistics from the year 1976 up till 2020. That indicator’s average value was 4.68%, with a minimum of 0.19% in 1976. The maximum value that the remittance industry reached was 10.59% in 2012. The current value of 2020 indicates an increase of 0.76% since 2017. 

The figures below are taken from the World Bank’s website, which shows the graphs for the longer historical series of remittances in Bangladesh and the recent increase/decrease in the value.

How Remittances to Bangladesh Help Boost the Economy?

Online money transfers to Bangladesh have strengthened the economy of the country extensively. Bangladesh is gaining popularity every passing year, along with the increasing external demand for the Bengali workforce. Remittances have helped increase the social and economic factors like poverty reduction, housing, education, health care and investment activities of the recipient’s family. The influence of remittance has also increased the macroeconomic variable apace with the GDP of Bangladesh. Moreover, a report presented by Sage suggests that due to the more significant amount of remittance inflows, Bangladesh has been able to avoid huge fluctuations in the Balance of Payments (BOP) current account. 

This economic boost has led many Bengali migrants to find the best remittance service providers to send money to Bangladesh online. Some prefer traditional banking services; others move towards modern-day solutions by switching to an online money transfer service like ACE Money Transfer.

Best Remittance Service Provider in Bangladesh

Many have abandoned the traditional ways of sending money, either through a banking system or other alternatives, to accept the modern-day solutions. ACE Money Transfer’s primary goal is to help customers securely and swiftly send their hard-earned money online to their home country. Offering online remittance transfer services across the UK, Europe, Australia, Africa, Asia, Canada, and particularly Pakistan & Bangladesh, ACE has become the fastest-growing company with a well-reputed status in the industry. With over a hundred-plus receiving countries on its list, ACE has been entrusted by over 1.3 million valued customers that grow day by day. 

As the main concern for customers is reliability when it comes to online remittance service providers, ACE eliminates all those worries as well. It is recognised and regulated as an Authorized Payment Institution (API) by the Financial Conduct Authority (FCA) in the UK, AUSTRAC in Australia, Polish Financial Service Regulator KNF in Poland, and FINTRAC in Canada. So, the customers have the most trustworthy and reliable money transfer service with ACE.

ACE, a Win for Bangladesh

ACE Money Transfer has served its customers with the best features since its inception. The company has presented its Bangladeshi customers with lifetime offers and various lucky draws. Following its motto, “Smile on the beneficiary’s face is our earning”, ACE came out with substantial lucky draws for its valued Bangladeshi customers. ACE has excelled in the Bangladeshi remittance industry, from giving out iPhones to gifting Honda Livo Bikes to customers.

You might be surprised to find more benefits with the company. ACE offers ZERO fee transactions for its new customers in Bangladesh. Grab this offer now on ACE Money Transfer’s website.