Spain is the EU’s Largest Remitting Country Accounting for 24% of total Remittance to Non EU Countries


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According to a report titled “Global Money Remittance Industry - Performance and Forecast 2016” which provides a comprehensive analysis on global money remittance market.

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Spain is the EU’s Largest Remitting Country Accounting for 24% of total Remittance to Non EU Countries

  1. 1. TABLE OF CONTENTS1. Money Transfer Market1.1. Global Market Overview1.2. Global Remittance Industry Performance and Size1.3. Flow of Remittances1.3.1. Top recipient countries2. Remittance Industry Analysis by Geography2.1. Remittance Industry in Europe2.1.1. Eastern Europe2.1.2. Western Europe2.1.2.1. The UK2.1.2.2. Germany2.2. Latin America and the Caribbean2.3. The US2.4. Asian Regions2.5. Middle East and North Africa3. Industry Trends and Developments4. Future Prospects5. Growth Drivers5.1. Rising immigrants5.2. Role of Developing Countries5.3. Acquisitions for geographical expansion5.4. Mobile Money Remittance market6. Competitive Threats to Remittance Market7. Competitive Landscape8. Company Profile8.1. Western Union8.1.1 Business overview 2
  2. 2. 8.1.2. Financials8.1.3. Business Strategies8.2. MoneyGram International8.2.1. Business Overview8.2.2. Financials8.2.3. Business Strategies8.3. Euronet Worldwide (Ria)8.3.1. Business overview8.3.2. Financials8.3.3. Key Strategies9. Appendix9.1. Research MethodologyData Collection MethodsApproach9.2. Definitions9.3. Abbreviations9.4. Disclaimer 3
  3. 3. LIST OF FIGURESFigure 1: Industry Value Chain AnalysisFigure 2: Clearing System of Money TransfersFigure 3: Global Remittance Market (2006-2011)Figure 4: Remittance Flow to Developing Countries (2006-2011)Figure 5: Recipient Countries of Remittances from the EU (%) in 2010Figure 6: Remittance Outflows from Eurozone (2009&2010)Figure 7: Eastern European Top Remittance Recipients Annual Disposable Income (perhousehold) in 2010Figure 8: Remittance Inflow and Outflow in the UK (2006-2009)Figure 9: Remittance Inflow and Outflow in Germany (2006-2010)Figure 10: Remittance Flow to Latin America and Caribbean (2006-2010)Figure 11: The US Remittance Inflow and Outflow (2006-2010)Figure 12: Remittance Inflow to India (2007-2010)Figure 13: Global Money Remittance Market Forecast (2011-2016)Figure 14: Remittance Flow to Developing countries forecast (2011-2016)Figure 15: Leading Immigrations Countries Worldwide by Number of Immigrants in 2010Figure 16: Leading Emigration Countries in 2010Figure 17: Remittances to developing countries in % (2006-2011E)Figure 18 : Major MTOs-Number of Agent Locations in 2010Figure 19: Western Union Revenues (2006-2010)Figure 20: MoneyGram Revenues (2006-2010)Figure 21: Euronet (Ria) – Money Transfer Revenues (2008-2010) 4
  4. 4. LIST OF TABLESTable 1: Remittance Flow to Developing Countries (by Region) (2006-2011)Table 2: Top recipient countries (2006-2010)Table 3: Outflow of Remittances from the EUTable 4: Remittance Inflow to Eastern European Countries (2009&2010)Table 5: Outflow of Remittances from the EU Member States (2007-2010)Table 6: Migrant Worker’s Income Change in the US (%) (2009 & 2010)Table 7: Worldwide Leading Money Transfer Agents Description 5
  5. 5. GLOBAL REMITTANCE INDUSTRY PERFORMANCEAND SIZEDuring pre crisis period, in many developed countries sharp rise in immigration has beennoticed with the effect of globalization and growing educated population. In 2010, globalremittance flow has reached USD ~ billion at a growth rate of 4.33% after showing a negative performance in 2009. Remittance inflow to In 2010, global remittance developing countries also grew by 5.27% in 2010 to USD ~ flow recorded 4.33% billion result of recovering economy in various parts of the growth rate world compared to previous year. In year 2011, global remittance flow recorded only 3.00% growth from 2010level. On the other hand, a positive growth in global remittance flow was supported byimproving economies in some of the developing countries.Figure: Global Remittance Market (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011 6
  6. 6. FLOW OF REMITTANCESDuring economy crisis, in spite of recording negative performance in 2009, remittance inflow to developing countries worked as an extra source of finance 2.88% growth in remittance by reaching USD ~ billion. In 2010, increase in remittance flow to developing countries have been inflow was the outcome of recovering economies in various recorded in 2011 parts of the world. In 2011, concerns such as European debt crisis, sovereign financial crisis and slow growth in the USare leaving an inverse impact over the remittance inflow to developing countries. Only 2.88%growth in remittance flow to developing countries has been recorded in 2011 and it isexpected to grow at a slow rate in 2012.Figure: Remittance Flow to Developing Countries (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011ETable: Remittance Flow to Developing Countries (by Region) (2006-2011) 2006 2007 2008 2009 2010 2011E East Asia and Pacific Europe and Central Asia Latin America and Caribbean Middle-East and North Africa 7
  7. 7. TOP RECIPIENT COUNTRIESIn terms of remittance inflow, India and China is the largest receiver worldwide. While othercountries-France, Germany, Bangladesh, Belgium and Spain also holds a significant share interms of remittance inflow. Remittance outflow was highest in the US, Saudi Arabia,Switzerland, Russia, and Germany.Table: Top recipient countries (2006-2010) Remittances Remittances Remittances Remittances Remittances*Country 2006 2007 2008 2009 2010IsraelIndiaChinaPhilippinesMexicoPolandBangladeshNigeriaPakistanMoroccoVietnam 8
  8. 8. REMITTANCE INDUSTRY ANALYSIS BY GEOGRAPHYREMITTANCE INDUSTRY IN EUROPEGlobal financial crisis affected political, social and economy environment in Europeancountries which caused fall in per capita expenditures. Many companies incurred losseswhich led to job cuts and also a drop in outward remittance, registering almost 20% decline in 2009. Remittance inflow to EU countries also fell by Spain is the EU’s largest 14% during the year. Spain is the EU’s largest remitting remitting country accounting for country accounting for 24% of total remittance to non 24% of total remittance to non EU countries, closely followed by Italy, Germany, EU countries France and Netherlands. These five countries hold 49.79% of the total remittance outflow from EU to non-EU countries; although there is a sharp fall in the amount remitted by these countries in therecent past.Table: Outflow of Remittances from the EU 2006 2007 2008 2009 2010Total outflow of workers remittancesIntra-EU flowsExtra-EU flowsTable: Outflow of Remittances from the EU Member States (2007-2010)Countries 2007 2008 2009 2010SpainItalyGermanyFranceNetherlandsGreeceAustria 9
  9. 9. PortugalCzech RepublicBelgiumLithuaniaRomaniaThe year 2010 brought hope with recovering economy and positive outlook for job prospects.During the year remittance inflow grew 4.20% to USD ~ billion but still there were manycountries in the region struggling to recover.EASTERN EUROPEDeveloping economy structure in Eastern Europe reflects improving job prospects, educationlevel and standard of living. Many Eastern European residents moved to other developedregions to take the benefit of salary hike and better job opportunities; resulting into increasedremittance inflow to Eastern Europe which became an important source of income for theresidents. In 2009, percentage of flow showed a decline but accounted for an importantsource of income.Figure: Eastern European Top Remittance Recipients Annual Disposable Income (perhousehold) in 2010 USD Ukraine Serbia Romania Russia PolandIn 2010, countries like Moldova and Serbia accounted for the highest contribution ofremittance to country’s economy 22% and 17% of GDP. In terms of remittance receivingcountries, Poland and Russia were the two largest countries in the Eastern European region. 10
  10. 10. Table: Remittance Inflow to Eastern European Countries (2009&2010) 2009 2010PolandSerbiaRussiaUkraineBulgariaHungaryWESTERN EUROPEDuring recession some of the Bulgarian emigrants working in Belgium, France, Spain andother parts of the Western Europe lost their jobs. According to the IMF, unemployment ratein 2011-12 is expected to be 9.60% in the Euro Area and the major rise is expected to comefrom Spain and the UK.THE UKThe UK receives remittance from the US, Canada and Australian countries, taking itsremittance flow to USD ~ million in 2009. In terms of remittance outflow, developingcountries like India, Bangladesh, Pakistan and Nigeria receive a large amount of remittancefrom the UK.Figure: Remittance Inflow and Outflow in the UK (2006-2009) USD Million 2006 2007 2008 2009 Inflow Outflow 11
  11. 11. LATIN AMERICA AND THE CARIBBEANThe global credit crisis and efforts to stabilize the market left an inverse impact over the sub-regional remittance flows. From second half of 2010, region showed signs of recovery at avery low growth rate. Industrial and economic changes took place in 2009, which affectedremittance flow as well, registering a decline of 2.73% from 2008 results.Figure: Remittance Flow to Latin America and Caribbean (2006-2010) USD Billion 2006 2007 2008 2009 2010The region’s remittance industry showed a recovery in 2010 at a slow rate but the region isyet to recover from the recession. During 2010 second quarter onwards, remittance flowstarted improving and migrant workers started sending money to their home countries but thisfed away after the first quarter of 2011.THE USThe year 2010 brought hope for migrants working in the US with rise in earnings by 1.37%from previous year. A major portion of increase was noticed in female migrant workers,indicating rising working women in the society. There is still uncertainty in the environmentwhich is blocking remittance flow to increase from its present level. It may take time to go 12
  12. 12. back to normal stage of growth as many migrants are still covering up their losses and debtsincurred during 2008-2009.Table 1: Migrant Worker’s Income Change in the US (%) (2009 & 2010) Total Male Female20092010Figure: The US Remittance Inflow and Outflow (2006-2010) USD Million 2006 2007 2008 2009 2010 Inflow OutflowASIAN REGIONSImpact of recession was high in Central Asian countries due to dip in oil prices whichaffected the overall economic growth. In 2010, South and East Asian remittance flow grewslightly due to the effect of geographic diversity of their migrants. During 2009, remittanceinflow declined by 5.80% in India while country’s economy started recovering from thefourth quarter of 2009 and showed good results in 2010. 13
  13. 13. Figure: Remittance Inflow to India (2007-2010) USD Billion 2007 2008 2009 2010MIDDLE EAST AND NORTH AFRICASaudi Arabia (8.40%), UAE (3.90%) and Qatar (1.60%) are the largest source of remittancein the region. From last several years, crude oil sector in the Middle East was providingemployment to the workers from other countries but in 2009, a sharp fall in crude oil pricesresulted into decline in the per capita income of the residents and remittance outflow ofmigrants. The total remittance flow to Middle East and North Africa grew 4.85% in 2010 toUSD ~ billion compared to previous year. 14
  14. 14. FUTURE PROSPECTS The US, Russia and Germany are expected to continue to By 2016 the global money hold a leading position in the remittance market worldwide remittance market is despite a continuous fall in net immigrant’s population expected to grow at CAGR 6.44% from last three years (2009-2011). Once economy recovers from the setback and settle its national debts, thesecountries will start inviting people from different parts of the world to take the advantage oflow cost labor. By 2016 the global money remittance market is expected to grow at CAGR6.44% (2011-2016) reflecting a slow growth compared to CAGR 8.04% in 2006-2011.Figure: Global Money Remittance Market Forecast (2011-2016) USD Billion 2011 2012 2013 2014 2015 2016 15
  15. 15. Figure: Remittance Flow to Developing Countries Forecast (2011-2016) USD Billion 2011 2012 2013 2014 2015 2016 16
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