Britannica AI Icon

remittance

economics
Also known as: emigrant remittance

Quick Summary

In economics, a remittance refers to money sent by a person in one country to a person in another country. This is often sent by migrant workers to their families back home.12

Remittances are a significant source of income for many developing countries, often surpassing official development assistance. They can be used for various purposes, including consumption, investment, and education.3

While the term "remittance" can broadly refer to any payment for goods or services, in an economic context, it specifically denotes these cross-border money transfers.12

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.