Remittance inflows could take the edge off current account concerns

Concerns have been raised about the impact of less accommodative global monetary policy on capital flows to sub-Saharan Africa (SSA), but one factor that often gets overlooked is that of overseas remittances. In this Watch, we argue that remittance flows to SSA could rise over the coming years as the global economic recovery takes hold. This should offset some of the impact on balance of payments positions from a slowdown in capital flows.