07 Aug 2024
Do you know the worth of your single money transfer to Ghana in empowering the economic growth of your country? Remittance is one of the most vital tools for lifting the economies of underdeveloped countries like Ghana. In 2023, approximately one million Ghanaian people lived abroad in different parts of the world. It makes up 3.2% of Ghana’s total population. A significant part of Ghana's economy depends upon remittance. In 2022, Ghanaian expats sent 4.7 billion U.S. dollars of remittance to Ghana.
When expats make remittances to their families to run the household systems, this money is used in the market of that particular country. Hence, it can be said that remittances contribute to poverty reduction and income stability and regulate a sector's money. Moreover, the government deducts a specific tax from remittances, adding to the country's financial treasure. Every single transaction to Ghana holds a small tax, which means drop-by-drop Ghanaian treasures can become massive due to remittance. Explore the worth of your remittance in lifting Ghana’s economy.
Almost 1 billion people globally depend upon remittance for their financial matters. More than 200 million expats send money to their native lands. When expats send money to Ghana, the income goes through various processes like currency conversion and tax implications on remittance. Both these factors are significant in bringing about economic changes. Scroll down to discover how!
GDP stands for a country's gross domestic product. It includes all the goods produced and income generated in a country within a specific duration. When expats send money to their family members, they use it for multiple purposes such as education, business, or grocery. It shows that the remittance amount is utilized to buy either service for the growth of business opportunities in Ghana, which ultimately adds to the GDP because of additional income resources. Remittance empowers the country's socio-economic sector. In 2022, remittance added up to 6.1% of Ghana's GDP.
Remittance opens the gate of employment for people. On every remittance, the country takes out a tax amount, which is added to the GDP or state treasures of the country. The government can use that money for several purposes, such as improving fintech, industrial growth, advancing technology, and educational sectors, which opens job opportunities. Every new working plant or technological setup requires employees to work on it. This means that with consistent money transfers, the possibility of employment growth increases.
Approximately 800 million people and families depend upon remittance. They depend upon their loved ones who live abroad to cater to their basic needs, such as food, clothing, and shelter. Additionally, when expats send money to their families, they spend it to live a basic life. Remittance also promotes the rotation of money in a country, which helps remove poverty from the area. For instance, people borrow money from remittance receivers for aid.
Remittance uplifts investment and development areas. Expats often send money to invest in different companies to secure money and earn profit. It helps businesses grow and the country progress. The government can also use the taxes from remittance to open powerful industries or mills for economic growth. It will give collaborators a chance to truly invest their money, which leads to profits for investors and business owners. With every increasing business, the economy of the country gets better.
Sending remittance empowers the fintech industry and improves overall modernization and technological advancement. Countries with more excellent remittance rates tend to work on fintech to provide expats with a smooth way of sending money online. Through advanced remittance services like ACE Money Transfer, Ghanaian expats can easily send money to Ghana from anywhere. It is one of the fastest, most reliable, and most secure ways of sending remittances to Ghana.
Discover more here about ACE Money Transfer's Incentives for New Ghanaian Customers.
Remittance also raises the worth of a country’s currency. One US dollar is equal to 13.99 GHC. Remittance inflows strengthen foreign exchange reserves. They provide stability to the domestic currency and contribute to Ghana's macroeconomic stability. A greater flow of remittance directly improves the worth of currency by increasing banks' revenues and maintaining stability in the foreign exchange market.
With the remittance amount, a country can pay all its loans and move forward. It also increases people's assets, and banks remain functional all the time, increasing the financial reservoirs of banks and Ghana. When remittance receivers save their money in banks for a long time, they invest it in small businesses, agriculture, and foreign trading.
Remittance plays a vital role in empowering the economies of developing countries. Ghana stands at 131 out of 177 countries for its economic development. It means the country is still thriving to improve its economic factor. A government can strengthen its economy by investing in industries and businesses. All these require a significant money, which is possible through remittance. Read the importance of remittance for supporting the economy of Ghana:
The developing countries need a lot of money to drive their social and economic factors. Many Ghanaians are moving abroad to countries like the UK, Canada, and Australia to look for better life opportunities. They earn and send money back to Ghana to help their families have basic needs like food, education, shelter, bills, and clothes. Ultimately, remittance empowers society and enables a country to progress. The flow of remittance maintains the flow of money in a country and banks, help to increase the assets. The amount the government uses as taxes can be used for future investments.
Remittances serve as a reliable source of economic growth in Ghana. It contributes to lifting aspects like education, business, medical and technological sectors. The families who receive remittance either save it or invest in society, which leads to direct foreign exchange earnings for Ghana, contributing to overall economic growth. Buying small things or services helps the small sectors to run efficiently, and help that particular area grow. Moreover, when the same families visit hospitals, they use the money to buy medicines and treatments, and that money is used to upgrade the sectors.
Ghanaian families often spend most of their money either on starting their small businesses or for their children's education. On the other hand, the government also uses foreign exchange revenue to start projects like educational development and social welfare programs. It means a single penny as a remittance can significantly bring a robust economic progression to Ghana. Expats who online money transfer to Ghana using multiple money transfer options like credit cards, banks, and a service like ACE Money Transfer. It offers many advantages to Ghanaian expats.
Economic development means stabilizing a country's quality of life. It includes well-being and careful consideration of citizens' rights to food, shelter, and lives.
By investing in small businesses and companies in Ghana, participating in economic projects like educational and technological advancement, and consistently sending remittances to their loved ones, expats can contribute to the country's economic development.
Remittances empower a country's growth by providing a stable source of income. It boats economic sectors like investment in business, education, healthcare, and development employment opportunities.
Expats can enjoy benefits like low service fees, first fee-free transactions, and fast, secure, and instant transactions. Moreover, they can choose a transaction method and make business investments through ACE without restrictions.
Remittance contributes to a country's GDP by increasing household income and investment. It also contributes to the overall production and growth of economic sectors, industries, and businesses.
Reference Links:
https://www.ifad.org/en/web/latest/-/13-reasons-why-remittances-are-important
https://www.statista.com/statistics/1267872/personal-remittances-received-in-ghana/
