How Is Remittance Classified?
Remittance is defined as a transfer of non-commercial money by a worker to a member or citizen with family ties in another country. The money is used as part of the family member’s household income to be used in the homeland. Remittance is a significant contributor to international capital flow between countries.
India is the first country for money received from workers abroad. More people work in other countries and send money home to family members in India than in any other country in the world. Over the past ten years, the amount of money sent home to India has increased every year. In 2012, $68.82 billion was sent home to India, compared to 2021, when $87 billion was sent to India.
Chinese citizens at home receive the second-largest amount of remittance. Unlike India, China’s amount has varied over the past ten years. In 2012, China received $57.99 billion, but in 2021, the rate was down to just $53 billion. China reached its peak remittance amount in 2019 when it received $70.3 billion from workers abroad.
In Mexico, $53 billion was sent home to Mexican citizens in 2021. This number is a stark increase from ten years ago, when only $23.37 billion was sent home in 2012. The remittance amount in Mexico has increased every year, but the most drastic jump occurred between 2020 and 2021, when the dollar amount grew by over $10 billion.
In 2021, $36 billion was sent to recipients in the Philippines in remittance. This amount is a drastic increase from 2012 when just $24.61 was sent to the Philippines. This country has seen a steady increase over the past ten years, with about $2 billion increases every year.
Egypt is the first African country on our list of the highest remittance by country. This country received $33.3 billion in 2021. Although the remittance amount in Egypt is generally trending upwards, in both 2013 and 2016, this country went backward in total dollar amount. Between 2020 and 2021, Egypt saw a nearly $4 billion gain.
Another African country on our list, Nigeria, receives $18 billion in remittances each year as of 2021. This amount is a drastic decline from their all-time high in 2019 of $25.4 billion. Between 2012 and 2016, Nigeria saw a flat $20 billion in remittance without much fluctuation.
Pakistan falls in seventh place on our list of countries with the highest remittance. In 2021 Pakistan received $33 billion from workers abroad. While this is a shockingly high number for the 7th position on the list, years prior have been significantly lower. In 2012, Pakistan only received $14 billion. The increase in remittance only started to change in 2014, reaching $21 billion and increasing each year.
Bangladesh received $23 billion in remittances in 2021. This country has seen a steady increase in the amount received for the past ten years. In 2012, Bangladesh received $14.24 billion.