(LINA) – A survey conducted by the World Bank and the Liberia Institute for Statistics and Geo-Information Services (LISGIS) shows that remittances account for the largest percentage of Liberia’s Gross Domestic Product (GDP) than any country in Sub-Saharan Africa.
The survey reveals that remittances to Liberia grew from US$360 million in 2011 to US$549 million in 2016, representing 27 percent of Liberia’s GDP.
The report uncovered that about 75 percent of remittances from abroad to Liberians came from immediate family members. It also shows that 60 percent of transfers received were done informally.
In 2014 and 2016, about 40 percent of the total transfers received were done through traceable methods such Western Union, Moneygram or Mobile Money, the report further explained.
It said the United States ranks first in the inflow of remittances to Liberia with the inflow of remittances from the US constituting 70 percent of the total inflow to Liberia in 2014 and 61 percent in 2016.
The World Bank and LISGIS findings also noted that other countries provided 15 percent of inflows in 2014 and 3 percent in 2016.
The report, however, uncovers that in 2014, Liberia became the second top remittance-sender in the world. During that year, Liberia remitted US$366 million, which accounted for 18.2 percent of its GDP.
The report also pointed out that in the absence of private transfer, poverty level would increase more than thrice, especially in the urban areas.
The objective of the survey is to understand better the dynamics, composition and use of private transfers, especially remittances in Liberia, the report states.