Remittances are money transferred or send by the immigrant to their native country to support their families. There are many ways in which remittances are made. The most common is through banks, money transferring service and firms or credit institutions.
For a long time, remittances’ impact remained overlooked and uncounted even. As the cases of migrants are growing significantly, the impact of remittances is also being recognized by the countries as an important opportunity of foreign currency inflow, which is now considered as the second largest source in most developing countries and a vital medium to support monetary activities of the state.
As per the latest World Bank’s Migration and Remittances Factbook Report, the flows of remittances are expected to reach $500 billion. The expatriate population growth in the developed countries like Russia, USA, Saudi Arabia, Canada and Germany remain the main remittance sources with the significant increase in migration.
According the Factbook report, the top immigration countries with regards to population are Qattar, Monaco, UAE, Kuwait and Andorra. According to the World Bank Report, remittances to developing nation will expect to rise up to 370 billion in the next couple of years.
The report also suggests that the inflow of income through remittances will bring financial stability for the low to middle income families. The present economic studies have also stated that the spending on consumption generates long lasting economic development. The household expenditures increase through remittance can directly and positively affect country’s economy and boost the demand of consumer commodities and services. As a result, it triggers production and the new job opportunities. The economic analysts have already supported this theory and they say that increase in spending and remittance is a catalyst to reduce the poverty in any country.
The money inflow through migrants not only pours the treasury of households but it also reduces the foreign exchange deficit; therefore, it strengthens the country’s financial condition in some way. Whether in the longer run, it is an efficient way of improving the economic growth or can be considered as the solution for combating poverty in future. Longer the remittance flow continues, it will continue to benefit people’s lives as well.
Goldleaf Common Remitters service is one of the dedicated and specialized functions for employee benefit and retirement plans using multiple remitter and vendors for investment and benefit options. It includes non-profit 403(b), church plans and multiple employer plans.