Remittance flows to Europe and Central Asia expanded 19% to a record high of $79bn in 2022, according to a World Bank report.

The strong performance was due mainly to record high amounts of money transfers from the Russian Federation to neighbouring countries, it said.

In a June 13 press release, the World Bank said: “The surging inflows of Russian remittances were driven by capital migration through the relocation of Russian companies and citizens, the strong ruble, and the increased demand for migrant workers in Russia.

“In 2022, Ukraine remained the region’s largest recipient of remittances, receiving inflows of $17.1 billion, a decline of 5.4% over 2021. In the first four months of 2023, the volume of remittances decreased by 11.5%, pointing to continued weakness in remittance flows to the country. In 2023, remittance flows to the region are projected to grow by 1%. The average cost of sending $200 to the region was 6.4% in the fourth quarter of 2022, up from 6.1% a year ago.”

Economies where remittance inflows represent large shares of GDP—highlighting the importance of remittances for funding current account and fiscal shortfalls— include Tajikistan (51% of GDP) and the Kyrgyz Republic (31%).

Officially recorded remittance flows to low- and middle-income countries (LMICs) worldwide are expected to grow by 1.4% to $656bn in 2023 as economic activity in remittance source countries is set to soften, limiting employment and wage gains for migrants, according to the World Bank’s latest Migration and Development Brief.