This table provides metadata for the actual indicator available from Vanuatu statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Vanuatuan statistics, this table should be consulted for information on national methodology and other Vanuatu-specific metadata information.
| Proxy |
No |
|---|---|
| Definition |
The “Total Annual Remittances as a Proportion of GDP” indicator measures the total value of remittances sent by individuals working abroad to their home country over the course of a year, expressed as a percentage of the country’s Gross Domestic Product (GDP). Remittances include funds transferred by migrant workers to family members or others in their country of origin. |
| Concept |
This indicator tracks the significance of remittances in relation to the overall economy by comparing the total value of remittances received to the country’s GDP. Remittances are an important source of income for many households, contributing to poverty alleviation, household spending, and investment in education, health, and housing. By expressing remittances as a proportion of GDP, this indicator provides insight into the extent to which remittances contribute to the national economy and how dependent the country is on external financial inflows from its diaspora |
| Disaggregation |
Country of remittance |
| Rationale |
Monitoring total annual remittances as a proportion of GDP is essential for understanding the economic impact of remittances on the national economy. High remittance inflows relative to GDP can indicate a significant reliance on external income sources, which can have both positive and negative implications. Positively, remittances can help stabilize the economy by providing a steady flow of foreign currency and supporting household consumption. However, a high dependence on remittances may also suggest vulnerabilities, such as exposure to economic downturns in countries where the diaspora is concentrated. |
| Method of Computation |
To compute “Total Annual Remittances as a Proportion of GDP,” first collect data on the total value of remittances received by the country and the GDP for the same year. Then, calculate the proportion by dividing the total remittances by the GDP and multiplying by 100 to express the result as a percentage. Formula: Remittances as a Proportion of GDP (%) = (Total Annual Remittances/GDP) * 100 |
| Sustainable Development Goal Indicator Alignment |
8.8.1 8.8.2 |
| Unit of Measurement |
Percentage |
| Frequency of Collection |
Annually |