Remittance inflows in Nepal to increase up to USD 8.5 billion in 2022: World Bank

Remittance is projected to increase by 3.6 percent and reach as high as USD 8.5 billion in Nepal in 2022, the World Bank estimated.

The World Bank projected so in a ‘Migration and Development Brief’ unveiled recently. In 2021, the remittance inflow in Nepal was recorded at USD 8.2 billion.

The World Bank estimated that Nepal will earn remittance, one of the sources of foreign exchange earnings for Nepal, amounting to 22 percent of the country’s total Gross Domestic Product (GDP) in 2022.

The World Bank analyzed that the surge in the remittance inflows are attributed to various factors, such as increasing the limit of the amount to be sent daily, implementing the provision to open a foreign currency savings account, and additional interest for the amount sent as remittance and to be kept in the fixed deposit account.

The World Bank projected that global remittance inflows could increase by 4.9 percent in 2022. In 2021, the highest remittance was mobilized in the last decade. Compared to 2020, the remittance inflows had surged by 10.2 percent in 2021.

This year, migrant workers and remittances were affected by the impacts of the COVID-19 pandemic, the Russia-Ukraine war, and inflation among others factors, according to the World Bank.