WorldRemit Data: 2023 Global Cost of Living Index Shows Significant Increases Since 2022
- WorldRemit's data shows that 73% of respondents in the US, 70% in the UK, and 78% in Australia, have reported an increase in the daily cost of living.
- Over a third of respondents noted a significant increase in housing costs, a 27% increase from 2022.
- One billion people worldwide – approximately one in eight – depend on remittances.
- Nearly a third of respondents reported a significant decrease in disposable income.
LONDON, Sept. 13, 2023 /PRNewswire/ -- Global payments company WorldRemit announces the results of its third Global Cost of Living Index. The year-on-year study assesses how the cost of living crisis is affecting financial decisions, including those of remittance senders who regularly send money home to support their loved ones.
Results show 73% of respondents in the US, 70% in the UK, and 78% in Australia reported an increase in the daily cost of living and globally, 81% said they felt utility costs increased in recent months. Housing costs continue to be impacted with 72% of respondents reporting an upswing in mortgage and rent payments, while 46% of respondents noted an increase in education and 74% in transportation.
One billion people worldwide – approximately one in eight – depend on remittances. As per WorldRemit's 2023 Cost of Living Index, remittances sent to family and friends remain the main reason for money transfers (85%), with nearly a third (30%) of participants expressing a strong inclination to solely send money to their closest family members.
One in ten remittance senders are feeling heightened pressure to send money home. Against this backdrop, the number of respondents who reported an increase in the cost of living for those they send money to grew by 73% since the start of 2023. 54% of respondents reported going out less and trying to cook more at home; 47% said they are actively finding ways to save more money on their own day to day expenses; and 31% reported no longer going out for social gatherings to save money.
"As international money senders report rising living costs both for themselves and their families, they are increasingly making the tough decision between supporting themselves and supporting their loved ones back home. Receivers rely on the hard-earned money delivered by remitters for vital things like day-to-day expenses (such as food, transportation and clothing), healthcare and educational support," said Mark Lenhard, Group CEO, Zepz.
"Our data shows that as the cost of living crisis looms, many are making sacrifices in order to continue to provide that support to billions across the globe."
The multi-country study was fielded in July 2023 to determine the ongoing effects of the increased cost of living on international money senders in the United States, United Kingdom, and Australia, resulting in observations from 3,000 international remittance senders. WorldRemit's 2022 Cost of Living survey can be found here.
Notes to Editors:
Methodology
International money senders living in the USA, Australia, and the United Kingdom, aged 18+ voluntarily responded to a 13-question survey between 28 July and 3 August 2023 about how the cost of living and inflation has changed behaviours when it comes to sending remittances.
The survey took place on the Attest platform and resulted in 3,000 (1,000 per country) responses from people who have sent remittances in the past year (those who responded that they have not sent remittances in the past year were exited from the survey to create a viable participant base).
No quotas (e.g. gender, age) were set for this survey so results are not intended to be nationally representative.
About WorldRemit
We're a leading global payments company as part of Zepz Group, a group powering two global payments brands.
We disrupted an industry previously dominated by offline legacy players by taking international money transfers online - making them safer, faster and lower-cost. Zepz Group brands have helped cross-border communities send over $15bn from 50 countries, to recipients in 130 countries in 2022, and operate over 5,000 money transfer corridors worldwide. Zepz Group employs over 1,400 people globally as a remote-first employer, with team members located across six continents.
On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.
Backed by Accel, TCV and Leapfrog – WorldRemit's headquarters are in London, United Kingdom with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.
Media Contact
WorldRemit Press Office
media@worldremit.com
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