Canada sent $7,193 million in remittances in 2021, while it received just $807 million. We’ve unpacked the most recently available data from the World Bank to get an idea of where this money is coming from. Figures are in US dollars.
Key statistics
Global inward remittances amounted to US$773,190 million in 2021.
Canada sent US$7,193 million in remittances in 2021, up from US$6,785 million in 2020.
India received the most remittances at US$89,375 million, while the United States sent the most at US$74,577 million.
What does remittance mean?
Remittance refers to the transfer of money. In this case, it’s about transferring funds from someone in one country to a person in another country. It’s particularly important in many developing nations, where international remittances make up a significant portion of the country’s GDP. The total value of remittances received around the world has increased significantly over the past 2 decades.
Remittances to and from Canada
Canada sent a total of $7,183 million in remittances in 2021, higher than the $6,785 million in 2020 but lower than the $8,763 million in 2019.
Meanwhile, Canada received a total of $807 million remittances in 2021. This is a significant drop from the $1,312 million in 2020 and $1,296 million in 2019.
Countries whose GDPs depend on money transfers
Countries that are classed as “developing nations” saw migrant remittance inflows making up a solid percentage of their GDP in 2021. In countries such as Lebanon, migrant remittance inflows were responsible for more than half (54%) of 2021 GDP. Rounding out the top 5 countries reliant on migrant remittance inflows were Tonga (44%), Tajikistan (35%), Kyrgyz Republic (33%) and Samoa (32%).
Where is all that money coming from? Of all the countries that are sending money overseas, the US sends by far the most offshore, with $74,577 million being sent in 2021.
The United States was followed by Saudi Arabia ($40,735 million), China ($22,903 million), the Russian Federation ($16,820 million) and Luxembourg ($15,563 million) to round out the top 5 countries sending money abroad.
As far as where that money is being sent, India tops the list for countries receiving remittances at $89,375 million.
India was followed by Mexico ($54,130 million), China ($53,000 million), the Philippines ($36,685 million) and Egypt ($31,501 million) to round out the top 5 countries receiving money from abroad.
Which countries are receiving more than they’re sending?
With $89,375 million received in remittances (inward) and just $8,181 million sent (outward), India has the top net remittance of $81,194 million in 2021. Rounding off the top 5 markets are the Philippines ($36,429 million), Pakistan ($30,982 million), China ($30,097) and Bangladesh ($22,102 million).
On the other end of the spectrum is the United States, with a 2021 net remittance of -$67,878 million – meaning they’re sending more money in remittances than they received. The United States is followed by Saudi Arabia (-$40,440 million), Luxembourg (-$13,290 million), the Netherlands (-$12,649) and Qatar (-$10,139 million).
With such an enormous amount of money being moved across borders, what is the cost of sending money overseas? The fees that most providers charge include exchange rate margins as well as a transfer fee.
The global average rate for remittances is 7.14%*, but this varies by country and method of payment. Banks are by far the most expensive method to remit money, with fees averaging 10.8%. Money transfer operators charge an average fee of 6.2%, while post offices charge the least at 5.5%. However, this is just an average and the number can vary. Make sure to compare what options are available to you before diving in.
The map below shows the average rate of remittance fees globally and is sortable by the year. In 2017, the most expensive countries included Angola at 24% and Nigeria at 25%.
*Average remittance fees around the world were calculated through the analysis of multiple US$200 transactions made worldwide. Data comes from KNOMAD/World Bank as of May 2022.
Richard Laycock is Finder’s NYC-based senior content marketing manager & insights editor, spending the last decade data diving, writing and editing articles about all things personal finance. His musings can be found across the web including on NASDAQ, MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University, including a semester abroad at The Missouri School of Journalism (MIZZOU).
If you’re looking for a secure way to send money overseas, an international bank draft could be for you — but if speed is important, consider using a money transfer service instead.
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