India has emerged as the top recipient of remittances in 2024, with an inflow of $129 billion, followed by Mexico ($68 billion), China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion), according to World Bank economists.
The global remittance growth rate has reached 5.8% in 2024, a notable increase from 1.2% in 2023. Key drivers include the recovery of job markets in high-income OECD countries, particularly the United States, where foreign-born worker employment has surged 11% above pre-pandemic levels.
Remittance flows to low- and middle-income countries (LMICs) are projected to reach $685 billion in 2024, significantly surpassing foreign direct investment (FDI). Over the past decade, remittances have increased by 57%, while FDI declined by 41%, indicating a growing gap expected to widen further.
South Asia is leading regional growth, with an 11.8% increase in remittance inflows driven by robust contributions from India, Pakistan, and Bangladesh.
Experts highlight the importance of leveraging remittance flows for poverty alleviation, financing education and health, promoting financial inclusion, and enhancing access to capital markets.