(MENAFN) Remittances by countries all over the world have played a significant role in the their GDP, according to Iran Daily.
In Tajikistan, remittances formed 50 percent of the countrys GDP, while in Bangladesh, it supported its economy and protected it against poverty.
Kaushik Basu, senior vice president and chief economist of the World Bank, said: "In terms of volume, India, with $71 billion of remittances, tops the global chart. To put this in perspective, this is just short of three times the FDI it received in 2012. Remittances act as a major counter-balance when capital flows weaken as happened in the wake of the US Fed announcing its intention to reign in its liquidity injection program. Also, when a nation"s currency weakens, inward remittances rise and, as such, they act as an automatic stabilizer."
The top countries that received remittances in the current year were: India, China, and the Philippines.
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