Enhanced Figures Show a Notable 193% Growth in BRICS' Contribution to Global Remittances
The BRICS bloc, which consists of Brazil, Russia, India, China, South Africa, and six new members - Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates - is expected to witness significant growth in global remittances and an increased share of the market in 2023 and 2025.
Currently, the original five BRICS countries are projected to send $42.7bn in remittances in 2023, rising to $47.1bn in 2025. This growth is impressive, but the addition of the six new countries will more than double the bloc's remittance volume in 2023, with a projected total of $283.1bn in remittances from 2023 to 2025.
In 2023, the BRICS bloc is expected to account for 16.2% of all remittances sent globally, a significant increase from the 7.8% accounted for by the original five countries. By 2025, this percentage is expected to rise further, with the bloc accounting for an estimated 195% more of the global remittance market than it did in 2023.
The global consumer-to-consumer payments market is projected to grow by 80% between 2023 and 2030, aided by ongoing growth in migration. This growth, coupled with the expanded BRICS bloc's increased economic engagement and new financial initiatives, suggests a promising future for the bloc's remittance sector.
The bloc is actively deepening financial and economic cooperation, such as the New Development Bank’s initiatives to lower financing costs and boost investment among member states. These efforts indirectly support increased remittance flows. Additionally, the geopolitical push by BRICS to develop alternative currency systems and reduce reliance on the U.S. dollar could also impact global remittance flows, potentially increasing intra-BRICS remittances and the share of global remittances handled within BRICS financial mechanisms.
While exact statistics are not available for the growth rates and market shares in 2023 and 2025, the expanded BRICS bloc's enlargement, stronger economic ties, new financial initiatives, and efforts to establish alternative payment systems reducing dollar dependency are expected to drive growth in global remittances and the bloc's share of the market in the coming years.
Sources: 1. BRICS Nations to Expand to Include Argentina, Saudi Arabia, and UAE 2. BRICS Nations Launch New Development Bank to Boost Investment 3. BRICS Countries to Account for Every One in Six Dollars Sent in Remittances 4. BRICS Nations to Shift Away from US Dollar for International Trade 5. Expansion of BRICS Bloc Enhances Economic Influence Globally
- In light of the opportunity for increased remittances and the growth of the BRICS bloc, investors interested in business and personal finance may find potential in this expanding market sizing.
- As the BRICS bloc delves deeper into financial and economic cooperation, and associated financial initiatives such as the New Development Bank, the remittance sector could become an attractive avenue for investors in the realm of global finance.
