Cash transfers to low- and middle-income countries eased this year, with rising prices taking a toll on migrants' incomes, the World Bank said Wednesday.
Remittances to lower-income countries rose around five per cent to $626 billion, lower than the 10.2 per cent jump in 2021, the bank added in a report.
While the reopening of economies as the pandemic receded helped with employment, rising costs "adversely affected migrants' real incomes," the Washington-based development lender said.
And in 2023, the increase of such remittance flows is projected to slow further to two percent, as GDP growth in wealthier countries moderates.
"Downside risks remain substantial, including a further deterioration of the war in Ukraine, volatile oil prices and currency exchange rates, and a deeper-than-expected downturn in major high-income countries," said the World Bank in its report.
Meanwhile, rising oil prices and continued demand for migrant workers boosted remittances to Central Asian countries, while the ruble's appreciation against the US dollar translated into higher value of outward transfers.
But in Europe, a weaker euro had the opposite effect, the report said.
In Ukraine, remittance growth is pegged at two per cent, lower than earlier estimates "as funds for Ukrainians were sent to countries hosting them, and hand-carried money transfers likely increased," the bank added.
Meanwhile, India is on track to receive over $100 billion in yearly remittances in 2022.