Bangladesh’s remittance growth to remain flat in 2022: World Bank

Bangladesh's remittance earnings have been projected to increase by about 2% in 2022 by the World Bank (WB). The latest estimate of remittance was published in the multilateral lender's Migration and Development Brief 36 on Wednesday. The report mentions that food inflation – driven by the ongoing Russia-Ukraine War – in the Gulf countries is inevitable and will dampen South Asian migrants' remitting potential in 2022 and 2023. The amount of money Bangladeshi migrant workers sent home in 2021 grew by 2.2% to $22 billion despite the economic stagnation caused by Covid-19. The figure is unlikely to see any drastic developments during the current year, added the WB report. However, country's monthly remittance inflow has seen a decline over the past eight months except for a 24% spike in March due to Ramadan. Bangladesh has been ranked seventh among the top 10 low-and middle-income remittance recipient countries in the world for 2021. Whereas, India retained its first position with $89 billion followed by Mexico, $54 billion, and China, $53 billion. However, the country ranked third on the list among its South Asian neighbours. As per the report's findings, Bangladesh's share of remittance earnings to the Gross Domestic Product (GDP) reached reach 6.2% in 2021. Meanwhile, in 2022, remittance flows to low and middle-income countries (LMIC) are expected to increase by 4.2% to reach $630 billion. An 8.6% growth was registered in 2021 with remittance flows reaching $605 billion. According to Bangladesh Bank (BB) data, remittance earnings in the July-April period of the current financial year stood at $17.3 billion.