Sky-rocketing figures reveal a staggering 193% boost in BRICS' contribution to global remittances
The BRICS bloc, a group of emerging economies, has expanded to include six new countries, and this growth is set to significantly impact the global remittance market.
The addition of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates has propelled the BRICS bloc to account for every one in six dollars sent in remittances, making it an increasingly powerful contender in the remittance space.
In 2023, the expanded BRICS bloc is expected to send $125.2bn in remittances, a figure that is set to rise to $138.9bn by 2025. This growth is expected to outpace that of the original five BRICS countries.
The increased size and remittance volume of the BRICS bloc make it a significant player in the global remittance space. In fact, the bloc is expected to account for 16.2% of all money sent as consumer remittances globally in 2023, up from 5.5% by the core five BRICS countries.
This shift could potentially lead to a move away from the US dollar for international trade within the BRICS bloc, renewing economic clout for the group on multiple metrics.
The UN IOM World Migration Report indicates that the percentage of people who are migrants globally has grown consistently over the last few decades, rising from 2.87% of the world's population in 1990 to 3.9% in 2020. This ongoing migration is projected to fuel the growth of the global consumer-to-consumer payments market, which is expected to grow by 80% between 2023 and 2030.
The remittance growth of the BRICS bloc is noteworthy, particularly considering that Bangladesh, a potential new BRICS member, alone received $5.54 billion in remittances in Q1 2023, while Nigeria, another member or associated country, received $20.93 billion in diaspora remittances in 2024.
While precise aggregate remittance amounts or growth projections for 2023 and 2025 with the six new BRICS members are not publicly detailed, it can be inferred that the total remittance volumes would grow substantially due to the inclusion of large remittance-receiving countries like Bangladesh and Nigeria.
The increased size and remittance volume of the BRICS bloc, along with potential shifts in international trade practices, could have powerful implications for remittance trends in the future. The global consumer-to-consumer payments market is poised for significant growth, and the BRICS bloc is set to play a leading role in this development.
In conclusion, the expansion of the BRICS bloc and the inclusion of six new countries are set to transform the global remittance market. The bloc's increased size and remittance volume make it a significant player, and its potential shift away from the US dollar for international trade could renew economic clout for the group on multiple metrics. The future of the global remittance market is undoubtedly intertwined with the growth and evolution of the BRICS bloc.
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In light of the expansion of the BRICS bloc and the addition of six new countries, market sizing for finance in the global remittance market is set to change significantly, as the bloc's increasing remittance volume positions it as a key player for potential investing opportunities in the business sector.
The heightened growth projections of the global consumer-to-consumer payments market, expected to increase by 80% between 2023 and 2030, present an attractive setting for investments, with the BRICS bloc set to play a leading role due to its substantial remittance growth.
