Connect with us

GDP

Animated Chart: Remittance Flows and GDP Impact By Country

Published

on

Remittance transfers received by countries in 2022

Visualizing Remittance Flows and GDP Impact By Country

The COVID-19 pandemic slowed down the flow of global immigration by 27%. Alongside it, travel restrictions, job losses, and mounting health concerns meant that many migrant workers couldn’t send money in the form of remittances back to families in their home countries.

This flow of remittances received by countries dropped by 1.5% to $711 billion globally in 2020. But over the next two years, things quickly turned back around.

As visa approvals restarted and international borders opened, so did international migration and global remittance flows. In 2021, total global remittances were estimated at $781 billion and have further risen to $794 billion in 2022.

In these images, Richie Lionell uses the World Bank’s KNOMAD data to visualize this increasing flow of money across international borders in 176 countries.

Why Do Remittances Matter?

Remittances contribute to the economy of nations worldwide, especially low and middle-income countries (LMICs). 

They have been shown to help alleviate poverty, improve nutrition, and even increase school enrollment rates in these nations. Research has also found that these inflows of income can help recipient households become resilient, especially in the face of disasters.

At the same time, it’s worth noting that these transfers aren’t a silver bullet for recipient nations. In fact, some research shows that overreliance on remittances can cause a vicious cycle that doesn’t translate to consistent economic growth over time.

Countries Receiving the Highest Remittances

For the past 15 years, India has consistently topped the chart of the largest remittance beneficiaries.

RankRemittance Inflows by Country2022 (USD)
1India$100,000M
2Mexico$60,300M
3China$51,000M
4Philippines$38,000M
5Egypt, Arab Rep.$32,337M
6Pakistan$29,000M
7France$28,520M
8Bangladesh$21,000M
9Nigeria$20,945M
10Vietnam$19,000M
11Ukraine$18,421M
12Guatemala$18,112M
13Germany$18,000M
14Belgium$13,500M
15Uzbekistan$13,500M
16Morocco$11,401M
17Romania$11,064M
18Dominican Republic$9,920M
19Indonesia$9,700M
20Thailand$9,500M
21Colombia$9,133M
22Italy$9,000M
23Nepal$8,500M
24Spain$8,500M
25Honduras$8,284M
26Poland$8,000M
27Korea, Rep.$7,877M
28El Salvador$7,620M
29Lebanon$6,841M
30Israel$6,143M
31United States$6,097M
32Russian Federation$6,000M
33Serbia$5,400M
34Brazil$5,045M
35Japan$5,000M
36Portugal$4,694M
37Ghana$4,664M
38Jordan$4,646M
39Czech Republic$4,539M
40Haiti$4,532M
41Ecuador$4,468M
42Georgia$4,100M
43Kenya$4,091M
44Croatia$3,701M
45Peru$3,699M
46Sri Lanka$3,600M
47West Bank and Gaza$3,495M
48Jamaica$3,419M
49Armenia$3,350M
50Tajikistan$3,200M
51Nicaragua$3,126M
52Kyrgyz Republic$3,050M
53Senegal$2,711M
54Austria$2,700M
55Switzerland$2,631M
56Sweden$2,565M
57United Kingdom$2,501M
58Hungary$2,404M
59Bosnia and Herzegovina$2,400M
60Slovak Republic$2,300M
61Moldova$2,170M
62Azerbaijan$2,150M
63Tunisia$2,085M
64Zimbabwe$2,047M
65Luxembourg$2,000M
66Netherlands$2,000M
67Myanmar$1,900M
68Algeria$1,829M
69Albania$1,800M
70Somalia$1735M
71Congo, Dem. Rep.$1,664M
72Malaysia$1,620M
73Kosovo$1,600M
74Denmark$1,517M
75Latvia$1,500M
76Bolivia$1,403M
77Belarus$1,350M
78Cambodia$1,250M
79Bermuda$1,200M
80South Sudan$1,187M
81Uganda$1,131M
82Mali$1,094M
83South Africa$1,019M
84Sudan$1,013M
85Argentina$966M
86Montenegro$920M
87Finland$880M
88Bulgaria$850M
89Slovenia$800M
90Australia$737M
91Madagascar$718M
92Turkey$710M
93Canada$700M
94Lithuania$700M
95Togo$668M
96Greece$665M
97Costa Rica$654M
98Estonia$626M
99Qatar$624M
100Iraq$624M
101Gambia, The$615M
102Tanzania$609M
103Norway$600M
104Panama$596M
105Burkina Faso$589M
106Hong Kong SAR, China$571M
107Paraguay$554M
108Mozambique$545M
109Niger$534M
110Cyprus$527M
111Lesotho$527M
112Mongolia$500M
113Rwanda$469M
114Fiji$450M
115North Macedonia$450M
116Guyana$400M
117Cabo Verde$375M
118Kazakhstan$370M
119Cameroon$365M
120Cote d'Ivoire$360M
121Liberia$351M
122Afghanistan$350M
123Ethiopia$327M
124Samoa$280M
125Mauritius$279M
126Saudi Arabia$273M
127Malta$271M
128Malawi$267M
129Zambia$260M
130Tonga$250M
131Comoros$250M
132Ireland$249M
133Suriname$221M
134Benin$209M
135Lao PDR$200M
136Timor-Leste$185M
137Sierra Leone$179M
138Guinea-Bissau$178M
139Trinidad and Tobago$172M
140Mauritania$168M
141Iceland$164M
142Eswatini$148M
143Belize$142M
144Curacao$131M
145Uruguay$127M
146Chile$78M
147Vanuatu$75M
148St. Vincent and the Grenadines$70M
149Grenada$69M
150Botswana$56M
151St. Lucia$55M
152Bhutan$55M
153Djibouti$55M
154Dominica$52M
155Burundi$50M
156Aruba$44M
157Namibia$44M
158Guinea$41M
159Solomon Islands$40M
160Oman$39M
161Antigua and Barbuda$35M
162St. Kitts and Nevis$33M
163Marshall Islands$30M
164Kuwait$27M
165New Zealand$25M
166Macao SAR, China$17M
167Angola$16M
168Kiribati$15M
169Cayman Islands$14M
170Sao Tome and Principe$10M
171Seychelles$9M
172Maldives$5M
173Gabon$4M
174Palau$2M
175Papua New Guinea$2M
176Turkmenistan$1M
TotalWorld$794,059M

With an estimated $100 billion in remittances received, India is said to have reached an all-time high in 2022.

This increasing flow of remittances can be partially attributed to migrant Indians switching to high-skilled jobs in high-income countries—including the U.S., the UK, and Singapore—from low-skilled and low-paying jobs in Gulf countries.

Mexico and China round out the top three remittance-receiving nations, with estimated inbound transfers of $60 billion and $51 billion respectively in 2022.

Impact on National GDP

While India tops the list of countries benefitting from remittances, its $100 billion received amounts to only 2.9% of its 2022 GDP.

Meanwhile, low and middle-income countries around the world heavily rely on this source of income to boost their economies in a more substantive way. In 2022, for example, remittances accounted for over 15% of the GDP of 25 countries.

RankRemittance Inflows by Country% of GDP (2022)
1Tonga49.9%
2Lebanon37.8%
3Samoa33.7%
4Tajikistan32.0%
5Kyrgyz Republic31.2%
6Gambia, The28.3%
7Honduras27.1%
8South Sudan24.8%
9El Salvador23.8%
10Haiti22.4%
11Nepal21.7%
12Jamaica21.2%
13Lesotho21.0%
14Somalia20.6%
15Comoros20.1%
16Nicaragua19.9%
17Guatemala19.8%
18Armenia18.9%
19West Bank and Gaza18.5%
20Cabo Verde18.2%
21Kosovo17.3%
22Uzbekistan17.0%
23Georgia16.2%
24Moldova15.4%
25Montenegro15.0%
26Ukraine13.8%
27Marshall Islands11.0%
28Guinea-Bissau10.9%
29Bosnia and Herzegovina10.1%
30Albania9.8%
31Senegal9.8%
32Jordan9.6%
33Philippines9.4%
34Fiji9.2%
35Liberia9.0%
36Dominican Republic8.8%
37Dominica8.6%
38Serbia8.6%
39Togo7.9%
40Morocco7.9%
41Pakistan7.7%
42Vanuatu7.6%
43Timor-Leste7.5%
44Suriname7.3%
45St. Vincent and the Grenadines7.3%
46Kiribati7.2%
47Egypt, Arab Rep.6.8%
48Ghana6.1%
49Mali5.9%
50Grenada5.8%
51Zimbabwe5.3%
52Croatia5.3%
53Belize5.3%
54Sri Lanka4.8%
55Madagascar4.7%
56Vietnam4.5%
57Bangladesh4.5%
58Tunisia4.5%
59Cambodia4.4%
60Sierra Leone4.3%
61Mexico4.2%
62Nigeria4.1%
63Rwanda3.8%
64Ecuador3.8%
65Latvia3.6%
66Romania3.6%
67Niger3.6%
68Kenya3.5%
69Bolivia3.2%
70Burkina Faso3.2%
71Myanmar3.1%
72North Macedonia3.1%
73Mongolia3.1%
74Eswatini3.1%
75Azerbaijan3.0%
76Mozambique3.0%
77St. Kitts and Nevis2.9%
78India2.8%
79St. Lucia2.7%
80Guyana2.6%
81Colombia2.6%
82Congo, Dem. Rep.2.6%
83Solomon Islands2.4%
84Luxembourg2.4%
85Mauritius2.4%
86Sudan2.3%
87Uganda2.3%
88Malawi2.3%
89Belgium2.2%
90Sao Tome and Principe2.0%
91Afghanistan2.0%
92Slovak Republic2.0%
93Antigua and Barbuda2.0%
94Bhutan2.0%
95Cyprus1.9%
96Portugal1.8%
97Thailand1.7%
98Belarus1.6%
99Mauritania1.6%
100Estonia1.6%
101Malta1.5%
102Peru1.5%
103Czech Republic1.5%
104Djibouti1.4%
105Burundi1.3%
106Paraguay1.3%
107Hungary1.3%
108Slovenia1.2%
109Aruba1.2%
110Lao PDR1.2%
111Benin1.1%
112Israel1.1%
113Poland1.1%
114Lithuania1.0%
115France1.0%
116Bulgaria0.9%
117Algeria0.9%
118Zambia0.9%
119Costa Rica0.9%
120Palau0.8%
121Panama0.8%
122Cameroon0.8%
123Tanzania0.7%
124Indonesia0.7%
125Spain0.6%
126Iceland0.5%
127Trinidad and Tobago0.5%
128Austria0.5%
129Cote d'Ivoire0.5%
130Seychelles0.4%
131Korea, Rep.0.4%
132Italy0.4%
133Germany0.4%
134Sweden0.4%
135Denmark0.3%
136Malaysia0.3%
137Namibia0.3%
138Switzerland0.3%
139Finland0.3%
140Botswana0.3%
141Greece0.2%
142Ethiopia0.2%
143Qatar0.2%
144Russian Federation0.2%
145Brazil0.2%
146China0.2%
147South Africa0.2%
148Iraq0.2%
149Guinea0.2%
150Netherlands0.2%
151Uruguay0.1%
152Kazakhstan0.1%
153Hong Kong SAR, China0.1%
154Argentina0.1%
155Norway0.1%
156Japan0.1%
157Maldives0.08%
158Turkey0.08%
159United Kingdom0.07%
160Macao SAR, China0.07%
161Ireland0.05%
162Australia0.04%
163Oman0.04%
164Saudi Arabia0.03%
165Chile0.02%
166United States0.02%
167Gabon0.02%
168Kuwait0.01%
169Angola0.01%
170New Zealand0.01%
171Papua New Guinea0.01%
172Turkmenistan0.001%

Known primarily as a tourist destination, the Polynesian country of Tonga banks on remittance inflows to support its economy. In 2022, the country’s incoming remittance flows were equal to almost 50% of its GDP.

Next on this list is Lebanon. The country received $6.8 billion in remittances in 2022, estimated to equal almost 38% of its GDP and making it a key support to the nation’s shrinking economy.

green check mark icon

This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

Click for Comments

Markets

Visualizing U.S. GDP by Industry in 2023

Services-producing industries account for the majority of U.S. GDP in 2023, followed by other private industries and the government.

Published

on

u.s. gdp by industry

Visualizing U.S. GDP by Industry

The U.S. economy is like a giant machine driven by many different industries, each one akin to an essential cog that moves the whole.

Understanding the breakdown of national gross domestic product (GDP) by industry shows where commercial activity is bustling and how diverse the economy truly is.

The above infographic uses data from the Bureau of Economic Analysis to visualize a breakdown of U.S. GDP by industry in 2023. To show this, we use value added by industry, which reflects the difference between gross output and the cost of intermediate inputs.

The Top 10 U.S. Industries by GDP

As of Q1 2023, the annualized GDP of the U.S. sits at $26.5 trillion.

Of this, 88% or $23.5 trillion comes from private industries. The remaining $3 trillion is government spending at the federal, state, and local levels.

Here’s a look at the largest private industries by economic contribution in the United States:

IndustryAnnualized Nominal GDP
(as of Q1 2023)
% of U.S. GDP
Professional and business services$3.5T13%
Real estate, rental, and leasing$3.3T12%
Manufacturing$2.9T11%
Educational services, health care, and social assistance$2.3T9%
Finance and insurance$2.0T8%
Wholesale trade$1.7T6%
Retail trade$1.5T6%
Information$1.5T6%
Arts, entertainment, recreation, accommodation, and food services$1.2T4%
Construction$1.1T4%
Other private industries$2.6T10%
Total$23.5T88%

Like most other developed nations, the U.S. economy is largely based on services.

Service-based industries, including professional and business services, real estate, finance, and health care, make up the bulk (70%) of U.S. GDP. In comparison, goods-producing industries like agriculture, manufacturing, mining, and construction play a smaller role.

Professional and business services is the largest industry with $3.5 trillion in value added. It comprises establishments providing legal, consulting, design, administration, and other services. This is followed by real estate at $3.3 trillion, which has consistently been an integral part of the economy.

Due to outsourcing and other factors, the manufacturing industry’s share of GDP has been declining for decades, but it still remains a significant part of the economy. Manufacturing of durable goods (metals, machines, computers) accounts for $1.6 trillion in value added, alongside nondurable goods (food, petroleum, chemicals) at $1.3 trillion.

The Government’s Contribution to GDP

Just like private industries, the government’s value added to GDP consists of compensation of employees, taxes collected (less subsidies), and gross operating surplus.

GovernmentAnnualized Nominal GDP
(as of Q1 2023)
% of U.S. GDP
State and Local$2.1T8%
Federal$0.9T4%
Total$3.1T12%

Figures may not add up to the total due to rounding.

State and local government spending, largely focused on the education and public welfare sectors, accounts for the bulk of value added. The Federal contribution to GDP amounts to roughly $948 billion, with 52% of it attributed to national defense.

The Fastest Growing Industries (2022–2032P)

In the next 10 years, services-producing industries are projected to see the fastest growth in output.

The table below shows the five fastest-growing industries in the U.S. from 2022–2032 in terms of total output, based on data from the Bureau of Labor Statistics:

IndustrySectorCompound Annual Rate of Output Growth (2022–2032P)
Software publishersInformation5.2%
Computing infrastructure providers, data processing, and related servicesInformation3.9%
Wireless telecommunications carriers (except satellite)Information3.6%
Home health care servicesHealth care and social assistance3.6%
Oil and gas extractionMining3.5%

Three of the fastest-growing industries are in the information sector, underscoring the growing role of technology and digital infrastructure. Meanwhile, the projected growth of the oil and gas extraction industry highlights the enduring demand for traditional energy sources, despite the energy transition.

Overall, the development of these industries suggests that the U.S. will continue its shift toward a services-oriented economy. But today, it’s also worth noticing how services- and goods-producing industries are increasingly tied together. For example, it’s now common for tech companies to produce devices, and for manufacturers to use software in their operations.

Therefore, the oncoming tide of growth in service-based industries could potentially lift other interconnected sectors of the diverse U.S. economy.

Continue Reading

Subscribe

Popular