Remittances’ effect on financial inclusion
When remittances are above 13% of gross domestic product on average, they strengthen financial inclusion by improving access and use of banking systems, the study finds
Remittances are one of the biggest sources of funds for low- and middle-income countries. However, the pandemic has disrupted them, with the World Bank recently projecting a 20% drop in inflows. Such a large decline in remittances can also affect financial inclusion in poorer countries, suggests data from a working paper published by the International Monetary Fund (IMF).