After several years of strong growth, remittance flows to developing countries began to slow down in the third quarter of 2008. This slowdown is expected to deepen further in 2009 in response to the global financial crisis, suggests the World Bank.
In nominal dollar terms, officially recorded remittance flows to developing countries are estimated to reach $283 billion in 2008, up 6.7% from $265 billion in 2007; but in real terms, remittances are expected to fall from two percent of GDP in 2007 to 1.8% in 2008. In 2009, remittances are expected to fall by 0.9%.
Remittance flows from the GCC countries are likely to fall more than those from the US and Europe, suggests the World Bank, affecting recipient countries in the Middle East and North Africa and South Asia.
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