Remittance inflow to increase: World Bank

The world bank has predicted further recovery in remittance and tourism revenues underpins expectations of gradual acceleration in 2011.
"The impact of the crisis on low-income remittance and tourism dependent countries was limited, with growth declining from 5.6 to 4.3 per cent between 2008 and 2009," the bank said in its Global Economic Report 2011. "Partly as a result, economy wide capacity utilisation is already back to long-term trend levels. The rebound in remittances-dependent economies is expected to be modest over the next two years, as employment conditions in high-income countries improve only slowly."
The report is a respite to the Nepali economy as the remittance is life-line of Nepali economy and as the country has started celebrating Nepal Tourism Year, the projection is encouraging.
"Tourism dependent economies were harder hit by the crisis, as declining incomes and uncertainties in tourism-originating countries yielded lower tourist volumes and/or reduced spending," said the report.
Tourism is also not expected to bounce back very forcefully in most countries, as prospects in originating countries strengthen only slowly.
While most countries experienced a bounce back in capital flows during 2011.
Nepal had received Rs 231.72 billion in the last fiscal year 2009-10, from the fiscal year 2008-09's Rs 209.69 billion. The growth of remittance had slowed down in the last fiscal year as the migrant receiving countries' were hit by the global economic crisis hard.
Earlier the World bank has predcted remittance flows to South Asia could grow strongly in 2008 despite the global economic crisis, but there has been slow down in a lagged response to a weak post crisis.In 2007-08, the country had received Rs 142.68 billion as remittance.

Ecomonic growth
KATHMANDU: The World bank report has also projected the global gross domestic product (GDP) to increase by 3.3 per cent and 3.6 per cent during 2011 and 2012, with developing economies expanding by six-or more per cent in each year, more-than twice the 2.4 per cent and 2.7 per cent growth expected for high-income countries.