Economy

Remittances to Ukraine expected to rise 22% due to war: World Bank

Remittances, money transfers by foreign workers or citizens abroad, accounted for 9% of Ukraine GDP last year, report says

Ovunc Kutlu   | 11.05.2022
Remittances to Ukraine expected to rise 22% due to war: World Bank

ANKARA

Remittance flows to Ukraine are expected to increase 22% this year due to Russia's war, according to the World Bank on Wednesday.

The international financial institution said in a report that Ukraine, the largest recipient of remittances in its region, got record remittance inflows of $18.2 billion in 2021, mostly driven by a sharp increase from Poland -- the largest host of Ukrainian migrant workers.

Remittances, which are non-commercial money transfers by foreign workers or citizens with familial ties abroad, accounted for 9% of Ukraine's GDP last year, it noted.

The World Bank said remittance flows from Russia to Ukraine are expected to be significantly disrupted due to the war. However, that decline is likely to be offset by an increase in the number of Ukrainians taking refuge in Poland and other countries.

"Reducing remittance fees by 2 percentage points could potentially save Ukrainian migrants over $400 million per year; if costs are reduced further, the saving could be even higher," the World Bank said in its report titled 'Migration and Development Brief.'

In total, remittance flows to low- and middle-income countries are estimated to increase by 4.2% to reach $630 billion this year, according to the report.

This level stood at $605 billion last year for annual gains of 8.6% from the previous year.

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