Nepal is third among the countries receiving the highest proportion of remittance in terms of gross domestic product (GDP) with the country receiving remittance worth 25 percent of GDP in 2012, according to a report made public by the World Bank (WB). African country Lesotho had also received remittance of 25 percent of GDP in 2012. Nepal was fifth in the list in 2011.
Nepal received remittance worth 23.1 percent of GDP in the fiscal year 2068/69 and 22.1 percent in 2069/70, according to the economic survey. The country had received Rs 359.60 billion of remittance in 2068/69 when GDP was Rs 1.53 trillion while the figure was Rs 434.58 billion in 2069/70 when the estimated GDP was Rs 1.71 trillion. Tajikistan topped the list in 2012 at 48 percent followed by Czech Republic at 31 percent while Moldova is fourth at 24 percent. WB estimated the remittance inflow of developing countries to grow by 6.3 percent and reach US$ 414 billion in 2013. China and India received around one/third of the remittance income of developing countries in 2012, according to WB.
The total remittance income of the developing and developed countries reached US$ 550 billion in 2012. The remittance income of developing countries, and that of the developing and developed countries will grow by nine percent on an average annually and reach US$ 540 billion and US$ 707 billion respectively, according to WB. India received remittance income of US$ 71 billion, China US$ 60 billion, Philippines US$ 26 billion, Mexico US$ 22 billion, Nigeria US$ 21 billion and Egypt US$ 20 billion in 2012. Pakistan, Bangladesh, Vietnam and Ukraine also received a large amount in remittance. WB revealed that remittance income grew everywhere across the world in 2012 except the Caribbean and Latin American regions where it fell due to the economic slowdown in the United States of America (USA).
Senior Vice President and Chief Economist of WB Kaushik Basu said that remittance income contributes almost half of the country’s GDP in Tajikistan while it has contributed to poverty alleviation in Bangladesh. “India also received a large chunk of remittance and foreign direct investment, therefore, dropped by two-thirds in 2012,” he added.
Remittances to Nepal have a stronghold in the national economy and they have also transformed the lives of a large number of rural people. Remittance inflow in Nepal began with the entry of Nepalese youths in the British Indian Army during the World War I. Following this, there were increased remittances to Nepal when a large number of Nepalese youths joined the Indian army...