Supporting the Folks at Home

Many immigrants, especially those with family in their old homelands, make it a habit to send money to their loved ones to help pay the bills.  This trend isn’t true just for the US–immigrants to most of the world’s richer nations tend to send money home when they can.  As The Economist points out, this money can have a major impact on foreign GDPs.

The map above shows the biggest recipients of these international remittances in 2007.  India is at the top, with $27 billion in foreign currency sent home.  China and Mexico aren’t far behind.  Rich Western European countries also receive a large value of money from overseas, perhaps because their expatriates are more likely to be highly educated than those from poorer countries.  Click here or on the picture above to see the article from The Economist, and a larger map.

Romania is a standout in the top ten, beating every Latin American country except for Mexico.  Bangladesh isn’t among the top ten recipients of international remittances, but the Phillipines is.  And no countries in Africa or the Middle East are on the list either.  Turkey, with its large diaspora in Central Europe, is another notable exception.

The map also includes a chart, on the right, showing that these remittances impact some countries’ GDPs quite significantly.  Tajikistan and Moldova–small countries with weak currencies–collect over 35% of their GDPs from foreign currency mailed home by the diaspora.

[via The Morning News]


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