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Australia sent $6,350 million in remittances in 2022, while it received just $1,298 million. We've unpacked the most recently available data from the World Bank to get an idea of which countries are sending and receiving the most remittances. Figures are in US dollars.
Key statistics
Global inward remittances amounted to US$831,103 million in 2022.
Australia sent US$6,350 million in remittances in 2022, an increase from US$3,812 million in 2021.
Meanwhile Australia received US$1,298 million in remittances in 2022, an increase from US$936 million in 2021.
India received the most remittances at US$111,222 million, while the United States sent the most at US$79,153 million.
What does remittance mean?
Remittance refers to the transfer of money. In this case, it's about transferring funds from someone in one country to a person in another country. It's particularly important in many developing nations, where international remittances make up a significant portion of the country's GDP. The total value of remittances received around the world has increased significantly over the past 2 decades.
Remittances to and from Australia
Australia sent a total of $6,350 million in remittances in 2022, which is higher than the $3,812 million sent in 2021 and $4,423 million in 2020.
On the other hand, Australia received a total of $1,298 million remittances in 2022. This is an increase from $936 million in 2021 and $1,197 in 2020.
Countries whose GDPs depend on money transfers
Countries that are classed as "developing nations" saw migrant remittance inflows making up a solid percentage of their GDP in 2022. In countries such as Tajikistan, migrant remittance inflows were responsible for more than half (51%) of 2022 GDP. Rounding out the top 5 countries reliant on migrant remittance inflows were Tonga (44%), Lebanon (36%), Samoa (34%) and Kyrgyz Republic (31%).
Which country is sending the most money?
Where is all that money coming from? Of all the countries that are sending money overseas, the US sends by far the most offshore, with $79,153 million being sent in 2022.
The United States was followed by Saudi Arabia ($39,349 million), Switzerland ($31,906 million), Germany ($25,599 million) and China ($18,256 million) to round out the top 5 countries sending money abroad.
As far as where that money is being sent, India tops the list for countries receiving remittances at $111,222 million.
India was followed by Mexico ($61,100 million), China ($51,000 million), the Philippines ($38,049 million) and France ($30,044 million) to round out the top 5 countries receiving money from abroad.
Which countries are receiving more than they're sending?
With $111,222 million received in remittances (inward) and just $10,089 million sent (outward), India has the top net remittance of $101,133 million in 2022. Rounding off the top 5 markets are the Mexico ($59,969 million), Philippines ($37,860 million), China ($32,744 million) and Pakistan ($29,663 million).
On the other end of the spectrum is the United States, with a 2022 net remittance of -$72,074 million – meaning they're sending more money in remittances than they received. The United States is followed by Saudi Arabia (-$39,062 million), Switzerland (-$29,286 million), Kuwait (-$17,722) and Luxembourg (-$13,298 million).
With such an enormous amount of money being moved across borders, what is the cost of sending money overseas? The fees that most providers charge include exchange rate margins as well as a transfer fee.
The global average rate for remittances is 7.14%*, but this varies by country and method of payment. Banks are by far the most expensive method to remit money, with fees averaging 10.8%. Money transfer operators charge an average fee of 6.2%, while post offices charge the least at 5.5%. However, this is just an average and the number can vary. Make sure to compare what options are available to you before diving in.
The map below shows the average rate of remittance fees globally and is sortable by the year. In 2017, the most expensive countries included Angola at 24% and Nigeria at 25%.
*Average remittance fees around the world were calculated through the analysis of multiple US$200 transactions made worldwide. Data comes from the KNOMAD/World Bank as of June 2023.
Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.
Are you due to receive a large sum of money from another country? Familiarise yourself with Australian laws and tax regulations regarding money transfers.
Minimum and maximum transaction limits can restrict your international money transfer options, so compare overseas transfer limits in this handy guide.
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