Global Money Remittances Market and Forecast to 2027-Impact Assessment of COVID-19 and Russia-Ukraine War

Global Money Remittances Market and Forecast to 2027-Impact Assessment of COVID-19 and Russia-Ukraine War

Executive Summary

Across the globe around 281 million migrants and their families rely on remittances for survival. Despite the COVID-19 crisis' severe economic impacts, remittance flows to low- and middle-income nations (LMICs) continued to persist and swiftly recovered following a significant drop at the outset of the crisis. Migrants' desire to aid their family by sending money home and relying on savings was one of the primary motivations for the constant flow of remittances in 2020. Since 2008, India has been the top beneficiary of remittances. The top five recipients of remittances as a percentage of GDP in 2020 were smaller economies such as Tonga, Lebanon, Kyrgyz Republic, Tajikistan, and El Savador. In 2020, the US, the UAE, and Saudi Arabia were the top three source countries for remittance outflows.

Global Economic Performance

The COVID-19 pandemic slowed down the economic growth of all countries. However, with record vaccination and consumption returning to pre-pandemic levels in 2021 and 2022, the outlook for economic progress across most countries is optimistic.

Impact of Covid-19

Global remittance flows have shown to be more resilient than expected during the COVID-19 pandemic. Inflows to low- and middle-income nations are particularly affected. Although total remittance inflows were reduced, certain nations saw significant increases during the crisis. Mexico, the world's third-largest remittance recipient, is among them, as are Egypt, Pakistan, and Bangladesh, the world's fifth, sixth, and eighth-largest remittance recipients, respectively. India and the Philippines saw the smallest declines among developing countries in 2020 compared to 2019, at 0.2% and 0.7%, respectively.

Impact of Russia-Ukraine War

Several Central Asian countries are heavily reliant on Russian remittances. With outbreak of the war many countries had a negative impact. The revised anticipated growth rates of remittances in Central Asia in 2022 is anticipated to decline.

Segmentation

Remittance Flow Post Covid-19 – Regional Performance

Remittances to the East Asia and Pacific region are expected to have decreased by 4%, although without China, remittances to the region increased by 1.4% in 2021 and it is expected to increase by 3.3% in 2022. Moreover, Mexico is the top remittance recipient in Latin America and the Caribbean, receiving 42% of the regional total. Remittances are likely to increase in 2022, owing to a poorer prognosis for the US.

By Type of Instrument

The most prevalent global remittance routes include banks, NBFI/MTOs, and Others. MTOs dominate the market, accounting for more than a quarter of total remittances. Banks are a significant route, however remittances from banks have been influenced by the entry of new players into the market and the rapid rise in popularity of mobile payments. Many of the world's largest remittance exporting countries are represented in the G8 nations.

By Type

Over the last 20 years, the US has continued to be the provider of the biggest outward remittances. Even throughout the low oil price period that is 2014-16, however, the UAE's outward remittances did not decline. Only during the COVID-19 epidemic was there a modest drop in outward remittances from the UAE. Inward remittances to India are at an all-time high. After a little decline in 2020, remittances to India is expected to increase. India has remained the dominant destination for inward remittances during the period from 2002-2020.

Digital Remittance by Transaction

The rise of the migrant population in developed countries, as well as increased banking sector usage, have been major drivers of the digital remittance industry. Although technology developments in the financial industry have aided market progress in recent years, digital remittances are expected to drop in 2020 as a result of COVID-19 harming the global economy, resulting in job losses in a variety of sectors.

By End User

Cross-border transfers and personal remittances are two types of payments. Payments made by a buyer to an international seller are referred to as cross-border payments. Domestic transfers will not be included. In the realm of personal remittances. Asian countries have the greatest number of migrant workers worldwide, as well as the highest inward remittances. On the other hand, Cross-border payments account for the largest share of the worldwide cross-border and remittances market. The cross-border payments market is evolving due to a few behavioral reasons

Scope of the Study

The synopsis is based on the report Global Money Remittances Market and Forecast to 2027-Impact Assessment of COVID-19 and Russia-Ukraine War published by Makreo Research and Consulting. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential.

Global Remittance Industry Segmentation

Global Remittance Market

By Remittance Channel

Banks

Money Transfer Operator

Others

By Remittance Type

Inward Remittance

Outward Remittance

Global Digital Remittances Market

Companies covered in the Global Remittance Market Report:

Remittance Market: Banks

JP Morgan Chase

Citi

Wells Fargo

HSBC

Goldman Sachs

Others

Remittance Market: MTOs

Western Union

Euronet Worldwide

Moneygram

Travelex

Ebix

The report helps reader to gain information on following areas:

How global economy is performing and what was the impact of the virus outburst in 2020?

How economy is expected to perform in near future considering the slowing down covid-19 cases and ongoing Russia-Ukraine crisis?

How Global remittances market has performed in the past?

To assess how COVID-19 has impacted the remittance flow?

Who are the top recipient economies and how their remittance flow has grown over last five years?

What is the role of MTOs in remittance flow and which is the dominant channel of remittance?

To understand the market's competitive outlook, key players are profiled and their strategies are analysed.