Money sent home by migrants boosts GDP of developing countries
The latest edition of the World Migration Report 2024 by the UN migration agency IOM highlights the significant impact of money sent home by migrants on the gross domestic product (GDP) of developing countries. This surpasses foreign direct investment, showcasing a shift in global migration patterns.
Driving development and growth
International migration is a key driver of human development and economic growth, with a remarkable increase in international remittances from $128 billion in 2000 to $831 billion in 2022, a growth of over 650%. This growth persisted despite predictions of a decrease in remittances due to the COVID-19 pandemic.
Financial impact
- Over $647 billion was sent to low and middle-income countries, significantly contributing to their GDP.
- Remittances globally now exceed foreign direct investment in these countries.
Record displacement
The report also highlights challenges, with an estimated 281 million international migrants worldwide, representing about 3.6% of the global population. Of these, 117 million are displaced, marking the highest level to date.
Migration dynamics
IOM emphasizes that migration is a fundamental part of human history, often overshadowed by sensationalized narratives. The agency stresses that most migration is regular, safe, and regionally focused, driven by opportunities and livelihoods. Clear and accurate portrayals of migration dynamics are crucial in countering misinformation and politicization.
Spotlight on Bangladesh
Dhaka was chosen as the launch site for the report to showcase Bangladesh’s efforts in supporting vulnerable migrants and promoting pathways to regular migration. As a champion of the Global Compact for Safe, Orderly, and Regular Migration, Bangladesh is committed to addressing migration issues and safeguarding migrants’ rights.