U.S. Is Top Source of Money Sent Home by Migrants

India gets more money sent back from migrants than any country in the world, according to a new World Bank report that also showed the U.S. was the top source of remittance.

Migrants sent $27 billion to India in 2007. China came in second, receiving $25.7 billion and Mexico was a close third with $25 billion.

"In many developing countries, remittances provide a life line for the poor," said Dilip Ratha, senior economist, and author of the World Bank’s factbook with Zhimei Xu. "They are often an essential source of foreign exchange and a stabilizing force for the economy in turbulent times."

The U.S., which was the top immigration country in 2005 with 38.4 million immigrants, is by far the largest source of outflows, with $42 billion in recorded outward flows in 2006. Saudi Arabia ranks as the second largest, followed by Switzerland and Germany. The Mexico-U.S. corridor is the largest migration corridor in the world, the Worlds Bank said, accounting for 10.4 million migrants by 2005.

For 2007, recorded remittances flows world-wide are estimated at $318 billion, of which $240 billion went to developing countries. However, the World Bank notes, “These flows don’t include informal channels, which would significantly enlarge the volume of remittances if they were recorded.” –Phil Izzo