In today’s volatile world climate, it should come as no surprise that analysts are predicting stronger than ever results from the international remittances market, largely due to the fact that a growing number of international migrants are being forced to leave their homes as a result of violent conflict and other issues. The current numbers are estimating a roughly $435 billion remittances total this year alone, which is nearly a five percent increase over last year’s levels.
One of the many reasons why remittances remain such an important factor in the world of international currency is the fact that this particular form of money transfer allows for expedient transfer of private cash inflows into developing nations. Studies have shown that, in 2013, remittances alone totaled well over three times the sum total of official development assistance.
It is also interesting to note that the relative cost of sending remittances to developing nations has dropped to roughly 7.9% of the total value transferred. That being said, the expenses associated with transferring money to Africa remain inordinately high. Although remittances may continue to expand and grow, the underlying factors contributing to this unprecedented growth are troubling in their own right. Experts now agree that forced migration levels are at their highest since the outbreak of the Second World War. In total, nearly 73 million individuals have been forced to leave their home country due to the outbreak of troubling conflicts.
There remains a silver lining to all of the aforementioned situations, however. A strong regional remittance platform in East Asia and the Pacific is directly helping to promote further economic stability in the area at large. It is also estimated that remittance levels will rebound in Latin America and the Caribbean in upcoming months.
While there is, obviously, no guarantee that the current global situation will remain as it stands today, it is likely that forced migrations and other shifts in global demographics will continue to create a dynamic remittances market that may prove to be advantageous for those whose business interests align with this specific phenomenon. It is likely that 2015 will be as, if not more, exciting to watch than the events of 2014.