According to the World Bank's most recent statistics, in 2008, Chinese expatriates and skilled workers trying their luck in foreign countries sent home a total of 40.63 billion USD – accounting for a whopping 1% of China's 2008 GDP.

Spare income wired from expatriates living and working abroad are major sources of cash flow for some developing countries. India, China, Mexico, and the Philippines are four such countries receiving huge figures in personal money transfers from abroad.

In the last seven years, China has placed second under India as the country reaping the most rewards from its diligent expatriates abroad. But in recent years, China has seen a significant growth of cash inflow from its expatriates: in 2007 the amount wired home reached 32.8 billion USD; in 2008, the number reached 40.6 billion USD (6.5 times the amount it was in 2000).

But will Chinese expats continue to send money home at such a high rate during economically stricken 2009? According to World Bank statistics, the total amount of personal money transfers made from overseas in 2008 was 328 billion USD worldwide, up 15% from 2007. They also predicted for 2009, with the economic downturn taking a toll in the developed countries, personal money transfer overseas will shrink an estimated 7-10% from 2008's figure.

Latin American immigrants and workers were the most affected by the slump that gripped the US economy since late last year. According to World Bank analysts, starting the first quarter of this year, money transfer made overseas to Mexico, Guatemala, and El Salvador have decreased a good 10% in comparison to the same financial quarter last year; those overseas transfers made to Southeastern Asian countries, however, might still see a bit of a surge, but with a obvious slowdown from its previous trend nevertheless.

Read the original in Chinese at gcpnews.com

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