- effects of the economic crisis on migrant stock,
- diversification of migration destinations,
- currency effects, and
- the link between barriers to labor mobility and the impact of economic cycles on remittances. If the barriers to labor mobility is low, then economy cycles and remittances are strongly related.
Existing migrants are unwilling to return back to their home countries, so remittances is expected to increase. Meanwhile, low demand for labor in the Gulf countries would reduce the stock of migrants from Nepal, Pakistan, India, and Bangladesh, among others.
The countries that have the most diverse migration destinations have better chances of remittances being more resilient. Additionally, the total value of remittance inflows to developing countries depends on the prevailing exchange rate, usually between US dollar and their domestic currency. The Indian rupee depreciated by almost 25 percent against the US dollar, leading to a surge in remittance flows and an increase in spending in housing sector, and in bank deposits and stocks.
Similar signs of investment-related remittance flows were seen in Nepal, Bangladesh, Pakistan, Tajikistan, Ethiopia, Moldova, and the Philippines.
One notable feature of remittances have been its impact on offsetting balance of trade deficit. It is particularly true in Nepal, the Philippines, Bangladesh, and Mexico.