SURGE IN REMITTANCES
The growing world remittances were $781 billion in 2021 and are expected to touch $794 billion in 2022. This growth rate was 10.2% in 2021, which was the highest since 2010. While in 2022, its growth rate was of 4.9%. Out of the $794 billion, $626 billion went to low- and middle-income countries (LMICs). Remittances are larger source of external finance for LMICs in 2022, as compared to foreign direct investment (FDI), official development assistance (ODA), and portfolio investment flows. The increase in migration to the Organization for Economic Co-operation & Development (OECD)countries which went up by 22% in 2021. The stimulus packages to bolster the economies in the United States (US) and the European Union during the pandemic, boosted the remittances. While the rising inflation & the hardening of the monetary stance in advanced economies are likely to adversely affect the flow of remittances in the coming years. The slump in the growth of remittances is however sharp