The United Kingdom is among the top countries that send money to Nepal. In 2018, Nepali migrant workers sent $8.1 billion home, making it the world’s 19th largest recipient of funds sent by workers outside their home country. Despite a decrease in the number of departures, remittances increased by 16.39% year over year. Nepal, along with Tonga, Kyrgyz Republic, Tajikistan, and Haiti, is one of the top five recipients of smaller economies in terms of GDP in 2018.
Five South Asian Economies are among the top 20 remittance recipients, with Nepal occupying the fourth position. According to the World Bank’s Migration and Development Brief, it is behind India ($78.6 billion), Pakistan ($21 billion), and Bangladesh ($15.5 billion) in terms of remittances, but ahead of Sri Lanka ($7.5 billion).
India receives the most remittances in the world, followed by China, Mexico, the Philippines, and Egypt. According to the World Bank, online money transfers to Nepal and other South Asian countries increased by 12% to $131 billion in 2018, outpacing a 6% increase in 2017. According to the survey, migrant workers and others sent $529 billion home to low- and middle-income countries last year, up 9.6% from the previous year, which was also high. According to the bank, such money transfers would reach $550 billion this year, making them the largest source of international financial resources.
What Is The Latest Trend Of Remittance Flow To Nepal During 2021?
Money transfers to Nepal have become a significant contributor to both household income and national GDP growth. Nepali migrant workers contribute significantly to the growth of their home country and the destination countries, filling labor market gaps that natives are unable or unwilling to serve. Their efforts, however, do not mitigate their susceptibility to exploitation and violence in the workplace. Studies of low-skilled migrants’ recruitment processes and working conditions regularly show signs of violence generally associated with slavery, such as forced labor and human trafficking.
During the first eight months of the current fiscal year (mid-July 2020 to mid-March 2021), Nepal received Rs 642.14 billion in remittances. In the review era, remittance inflows increased by 8.6 percent to Rs 642.14 billion, compared to 1.5 percent the previous year. In terms of the US dollar, expatriates send money to Nepal online rose by 5% to USD 5.45 billion during the review period, compared to 1.5 percent the year before.