Syria events likely to impact 2012 remittances

World Bank estimates total remittances in 2011 at $8 billion, unchanged from 2010

Remittances inflows to Lebanon in 2011 are estimated at $8 billion, according to the latest World Bank data. The ‘Outlook for Remittance Flows 2012-14’ report, updated this April, said the country is the tenth largest recipient of remittances among developing countries in 2011.

However, the World Bank said that “there is still uncertainty about data on remittance flows to Lebanon from 2010 onwards.” It projected a flat trend for 2010 and 2011 for remittance flows to Lebanon “until better information” becomes available.

The World Bank said that although the Central Bank reports that remittances to the country fell by more than 30 percent in 2010, there is no plausible reason given for such a big drop. It indicated that recent political events in Syria are likely to impact flows in 2012.

The World Bank data showed that the cost of remitting money from the United States dropped in the first quarter of 2012.The cost of transferring $200 reached 11.8 percent ($23.7) down from 12.6 percent a year ago. The cost of sending $500 reached 5.25 percent ($26.3), down from 5.5 percent.

Lebanon was the second most expensive destination for sending $200 and the 10th most expensive for sending $500 from the US. The World Bank report's data covered 27 economies.

Reported by Hanadi Chami