Finance Monthly January 2020 Edition

Global money transfers now have more impact in emerging economies than foreign aid and foreign direct investment. But how and why have global money transfers grown and where will it go next? BEYOND BORDERS: MOVING MONEY CHANGES LIVES The global growth of money transfers Some 270m migrant workers will send $689bn back home this year, according to the World Bank. This figure is a landmark moment. Global money transfers will now overtake foreign direct investment as the biggest inflow of foreign capital into developing countries. Global transfers are also now well ahead of private capital flows and foreign aid, the third and fourth largest inflows of capital to emerging economies respectively. In some countries, global money transfers now constitute a third of the total GDP. The most popular destinations for these transfers include India, China, Mexico and Egypt, according to the World Bank. Alberto Macciani, Global CMO at Paysend Sources: https://www.knomad.org/sites/default/files/2019-08/World%20Bank%20Board%20Briefing%20Paper- LEVERAGING%20ECONOMIC%20MIGRATION%20FOR%20DEVELOPMENT_0.pdf https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS https://www.worldbank.org/en/news/press-release/2019/04/08/record-high-remittances-sent-globally- in-2018 http://documents.worldbank.org/curated/en/590441468285573286/pdf/WPS6157.pdf https://ig.ft.com/remittances-capital-flow-emerging-markets/ https://en.unesco.org/gem-report/sites/gem-report/files/GEMR_2019-GEMR_Summary_ENG-v6.pdf https://www.bbc.co.uk/news/world-36139904 http://documents.worldbank.org/curated/en/332881525873182837/pdf/126033-PUB-PUBLIC- pubdate-4-19-2018.pdf https://www.pwc.com/gx/en/financial-services/fintech/assets/fin-tech-banking-2016.pdf 26 www.finance-monthly.com FINANCE & BUSINESS - MOVING MONEY