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 Remittances to India have declined by what percent in 2016, according to World Bank India?
  • a)
     4%
  • b)
     5%
  • c)
     6%
  • d)
     7%
Correct answer is option 'C'. Can you explain this answer?
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Remittances to India have declined by what percent in 2016, according ...
Explanation: 
World Bank India, the world’s largest remittance recipient in 2015 may receive a remittance of USD 65.5 billion this year, a drop of 5 percent according to the World Bank.
  • The reason for this is weak economic growth in remittance source countries and cyclic low oil prices
  • In 2016, remittance flows are expected to decline by 5% in India and 3.5% in Bangladesh while they will grow by 5.1% in Pakistan and 1.6 percent in Sri Lanka, the latest report on remittances said
  • Despite the drop, India is topping the countries receiving remittance this year, according to most estimates
  • The World Bank indicated in 2016, India is expected to receive a remittance of USD 65.5 billion followed by China (USD 65.2 billion)
  • Pakistan is positioned at number 5 and estimated to receive USD 20.3 billion in 2016
  • Remittances to South Asia are expected to decline by 2.3 percent in 2016 following a 1.6 percent decline in 2015
  • This is due to weak economic growth in remittances source countries and cyclic low oil prices
  • India retained its top spot in 2015, attracting close to USD 69 billion in remittances according to the World Bank
  • Remittances from GCC countries continued to decline on account of lower oil prices and about market nationalisation policies in Saudi Arabia
  • Gulf Cooperation Council is an alliance of 6 Middle Eastern companies- Kuwait, Saudi arabia, UAE, Oman, Bahrain and Qatar
  • This is set against the backdrop of tepid global growth, remittance flows to low and middle income countries to low and middle income countries
  • New normal of slow growth has been entered and in 2016, remittance flows to LMIC are projected to reach USD 442 billion, marking an increase of 0.8percent over 2015
  • Modest recovery in 2016 is largely driven by an increase in remittance flows to Latin America and the Caribbean on the basis of a stronger economy in the US
  • By contrast, the remittance flows to other developing regions either fell or recorded a deceleration in growth
  • Low prices continued to be a factor in reduced remittance flows from Russia and the GCC countries
  • Additionally, structural factors have also played a role in dampening remittances growth
  • Anti-money laundering efforts have prompted banks to shit accounts of money transfer operators, diverting activity to informal channels
  • Remittances continue to be an important component of the global economy, surpassing international aid
  • This new normal of weak growth in remittances can impact economies across the globe and create a new set of challenges for economic growth.
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Remittances to India have declined by what percent in 2016, according to World Bank India?a)4%b)5%c)6%d)7%Correct answer is option 'C'. Can you explain this answer?
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