Thousands of Bangladeshi diaspora living abroad send money to Bangladesh. Bangladesh has experienced frequent and massive labour migration to other countries since the 1970s, and it is still one of Asia’s most remittance-receiving countries. Remittances, like foreign employment, have been steadily increasing in recent years as their share of GDP and export earnings has increased, making them critical components of Bangladesh’s economic growth.
Unskilled labour, a lack of government initiatives to explore new overseas labour markets, and employees’ unwillingness to use legal channels to send money are all factors that limit remittance inflows to Bangladesh, according to our study. We assume that adequate planning, public awareness, and government participation will be necessary to ensure international remittance inflows in this context.
How Did Expatriates Help To Stabilize The Economy Of Bangladesh After Independence?
In the three decades since the mid-1970s, Bangladesh has sent over 6.7 million jobs to over 140 countries. The majority of these staff travel to Europe and Southeast Asia to serve for a short period. This massive influx of temporary migrant workers has helped relieve some of the stresses on the country’s overburdened labour market. More significantly, with last month’s large inflows, online money transfers to Bangladesh from these migrant workers have hit a record high of over 18,204.38 million US dollars in the 2019-20 fiscal year (July 2019-June 2020).
What Is The Definition Of Remittance According To the International Monetary Fund (IMF)?
Remittances are characterized as a portion of migrant workers’ income: money transfer to Bangladesh or back to their home country from their place of employment. Workers’ remittances, as defined by the International Monetary Fund (IMF), are the value of money transfers sent from workers who have lived abroad for more than a year to their home country and are registered in various parts of the balance of payments. In today’s developing economy, remittances have become a significant and stable source of foreign funding and capital accumulation.
How Has COVID-19 Effected Remittance To Bangladesh And Expatriates Jobs In Foreign Countries?
The economic importance of Bangladesh’s over 10 million migrants, who sent approximately $18 billion to the country in 2019, cannot be overstated. Remittances from abroad usually account for about 7% of Bangladesh’s GDP. However, the COVID-19 pandemic is wreaking havoc on Bangladeshi migrants abroad, disproportionately concentrated in countries with tight border controls. Given the large number of Bangladeshi migrants in the European Countries and the UK, secondary economic effects such as lower demand and lower oil prices are likely to put a strain on remittances. During the pandemic, expatriates used to send money to Bangladesh online.