When a Jordanian expat in any part of the world walks to an Xpress Money location to send money to his family back home; he is not just transforming the lives of the people who receive the money, he is transforming the future of Jordan. Over 750,000 Jordanians live and work outside Jordan to provide a better life and future for their families and loved ones back home. In doing so, they have become an integral part of the country’s economy.
Expat remittances play a key role in Jordan’s economy as a prominent source of foreign currency inflows, along with commodity, service exports, grants and foreign aid. About 70% of foreign remittances come from the GCC, and the rest from US and Europe. In 2017, Jordan received over 3.7 billion dollars in remittances from the Jordanians around the world. So, what’s the impact of this inflow?
Remittances that are sent for the upkeep of families in Jordan go a long way in transforming the lives of people in Jordan. The money is used for various purposes such as healthcare, investments, education, and commodities, among others. It also enables people to save money for the future. The impact of remittances on individuals and families, also has a ringing impact on the overall economy.
Boost to economy
As mentioned above, Jordanians who receive remittances spend that money in Jordan, putting that money back in Jordan’s economy. In a recent report by Jordan Strategy Form, it was reported that a 5% increase in remittances have a ‘positive impact’ on the national GDP and the real GDP per capita, with growth rates by 7.67 per cent and 4.93 percent respectively. The money sent by Jordanian expatriates also appeared to have a positive effect on bank deposits, bank credit available to the private sector and deposits in foreign exchange.
In January 2018, global remittances to Jordan increased by 4% as compared to the same month last year, according to the Central Bank of Jordan. The stabilization of remittances and trends showing signs of resurgence, are positive signs for the Jordanian economy.
In developing countries around the world, remittances have been a constant source of support for their economies. For Jordan, this source of foreign funds, plays an equally crucial role. Policymakers in Jordan have understood the importance of remittances; and are actively working towards creating diaspora-friendly policies. At Xpress Money, we have always believed in the true power of Remittances; and constantly work towards making money transfers more accessible, affordable, and secure.