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Remittances are an important source of income for households, particularly in developing countries. Remittances are gaining importance in the economic planning of all major developing economies of the world. With globalization and growing socio-political activities, more and more people from underdeveloped or developing economies are working outside the countries of their origin. Remittances are being considered as an important financial resource for development as well as a social change by financial planners in developing economies. The worldwide inflow and outflow of remittances is rising constantly since past several years with the exception of 2009, which was characterized by global economic slowdown.
The developing nations which include both low-income and middle income countries account for the majority of the global remittance inflow with majority contribution from India, China, Mexico and Philippines, due to their large emigrant population. The largest source of remittance flow to developing regions is high income countries including the US and Western Europe, with the GCC countries fast developing as an important source.
The key trends observed within the market include exchange rate, fluctuating remittance cost, regional employment or unemployment affecting remittances, number of RSPs and cost variation across India and China and dominance of cash prices over the remittance market. The global remittance market faces several challenges which include the taxes which are imposed by the government on remittances and numerous legal and regulatory hurdles. The major factors which will contribute in the growth of the industry include growing international migration, rising employment rate and global economic growth.
The report analyzes the global remittances market with focus on India, China, Mexico and Philippines. The companies operating in the global remittance market face strong competition with few large competitors and numerous small and niche competitors. The leading money transfer organization like Western Union, Money Gram, Euronet are profiled in this report.