19 per cent of remittance goes to real estate, central bank report shows

Around 19 per cent of the remittances received by the beneficiaries are invested in real estate, to be precise, purchase of liveable land and flats.

The latest report of a survey, conducted by the central bank, unveiled the information.

It also showed that around 18 per cent of the investment from remittances goes to small and medium enterprises (SMEs).

Of the remittance investment in SMEs, the bulk portion (63 per cent) goes to agricultural sector. This includes the purchase of arable land for fisheries, poultry, and dairy farms.

Some 36 per cent investment on SMEs from remittance goes to business, according to the survey report.

Financial investment accounts for 7.70 per cent and that includes deposits, saving instruments, capital market and insurance premium.

Bangladesh Bank conducted the survey in 2014 and collected time series data on utilisation of remittances for the period from 2009 to 2013.

The report titled "Utilisation of Workers’ Remittances in Bangladesh”, however, released in this month.