Bangladesh remittances hit record despite global slump

DHAKA (Reuters) - Bangladesh's expatriate workers sent home a record $9.68 billion in the fiscal year that ended in June, 22.3 percent higher than in 2007/08, in spite of the global economic downturn.

The impoverished South Asian country received $911.62 million in remittances from more than 6 million migrant workers in June, a central bank official said on Sunday.

Millions of Bangladeshis are dependant on money sent by relatives working overseas, mainly in the Middle East, Europe and the United States, which is also a key plank of the economy.

However, analysts fear the inflow of remittances could slow down in 2009/10 fiscal year as the number of workers leaving for overseas jobs is declining due to the recession in major markets.

Bangladesh's overseas employment fell in the past six months due to declining demand in major labour markets, including Saudi Arabia, United Arab Emirates and Malaysia.

Officials said strong remittances helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus.

The expat incomes, a key source of foreign exchange for the cash-strapped economy, totalled $7.91 billion in 2007/08 financial year, nearly a third higher than the previous fiscal year.