For many, ‘remittance’ is simply a cross-border money transfer, that is synonymous with international student payments. This is no surprise as remittances are most popular among students studying abroad who need to pay tuition and other fees related to their studies.
However, according to the World Bank, developing countries rely on remittances for about 3% of GDP. In some cases (such as Nepal), these figures are even higher at 30%. Here are a few facts you need to know about remittances!
Which Countries Rely the Most on Remittances (As A % Of GDP)?
According to the World Bank, you may be surprised to learn that ten countries derive more than 30% of their GDP from remittances. Moldova tops the list by a wide margin at 31.3% of its GDP, followed by Haiti (29.5%), Lesotho (27.1%), Kyrgyz Republic (26.9%), and Nepal (23%). The top 20 countries on this list are predominantly Africa and Central Asia. They include smaller European nations such as Tonga and Macedonia and larger countries like Tajikistan, Liberia, and Uzbekistan.
What % Of the World’s Population Lives in These Countries?
Did you know that, in the Philippines, one out of every four people lives abroad? That’s 25% of the population! Here are some other interesting facts about who is living abroad:
- In Pakistan, it’s a similar situation. 1/7th of Pakistan’s population lives abroad. That’s 14%.
- In The Gambia, it’s 1/6th of the people or 15%.
- In the Dominican Republic and Lebanon, it’s just over 1/8th. 13% in both countries.
How Do They Compare Economically With the Developed World?
Remittances contribute significantly to the economies of developing countries, but it’s worth considering how they measure up to the major economic players.
- GDP per capita: The US has a GDP per capita of $56,000, while Mexico has a GDP per capita of $9,300. Because of this significant difference in income levels and cost of living between the two countries, it’s not surprising that remittances make up about 1% of Mexico’s economy and less than 0.2% of the US economy.
- While remittances are only about 1% or less of developed countries’ economies, they’re much more critical for small developing nations. For example, Tonga relies on remittances for 37% of its total GDP; Samoa relies on them for 30%; Lesotho relies on them for 20%, etc.
How Can They Come Closer to Achieving Economic Equality?
If you care about economic equality and want to help your friends and family members, you can make a difference. The first step is to learn more about remittances and their positive impact on individuals and families worldwide. With this knowledge, you’ll be able to send money back home to your family when they need help.
You can use the Ria Money Transfer app as a safe, secure way to transfer funds from your country of residence back home. The app supports over 160 currencies around the globe, so you can rest assured that the app is easy for anyone with an internet connection to send money anywhere in the world.
If you’re looking for a reliable app to send money internationally, check out the Ria Money Transfer app. This service is fast and secure, available in 87 countries worldwide. And, if you are a first-time user, there are some great promotions available. You can use the app to send money to more than 200 countries and territories at any time of day or night. The app is available on Android and iOS devices – so you can easily make transfers from your phone anytime, anywhere.