A remittance economy is a country's economy where money sent from citizens working abroad (remittances) plays a significant role in GDP, foreign exchange reserves, and household income.
Key features include: being a major source of foreign currency, reducing poverty and improving living standards, boosting consumption and investment, helping offset trade deficits, and encouraging entrepreneurship.
Bangladesh is a strong remittance economy. Approximately 10 million Bangladeshis work abroad and send back billions of dollars annually. Remittances are vital for maintaining foreign exchange reserves and supporting millions of families across the country.