In the UK immigration is seen as a normal part of life. The National Office of Statistics suggests that immigration inflows reached 600,000 in 2007, largely led by a plethora of Eastern Europeans who came to Britain in search of work and prosperity . This is certainly not a new trend as the UK is a true melting pot of cultures and has experienced many waves of immigration over the years. 

One of the main reasons for migrants from developing countries to come to the UK is to take advantage of the strength of the currency and the improved earning potential, where the bulk of the money earned then gets sent home to support the family. This is termed a remittance pr global remittance.

According to a World Bank report global remittances from developed to developing countries is to reach a staggering $283 billion in 2008. The top three recipients for remittances are India, China and Mexico. The UK has historically had a huge Asian and South East Asian population and hence has experienced large outflows of remittances to these regions.

The outflows of remittances do vary significantly depending on the time of year, for example, sharp increases can be noted in the periods leading up to festivals such as Christmas. So with the holiday season on our door step we should expect to see a rise in remittances. However, amidst the global downturn it is suggested that we will see a fall in remittances over the short term. In real terms remittances are estimated to fall to 1.8% of GDP in 2008 compared to 2% in 2007. This will have a significant knock on effect on those who rely on these funds in developing countries. To add to this, Sterling has been falling in value against other currencies which means the recipient will receive less than they are used too.