most of the gdp data are provisional estimates it was found that remittancefinanced community projects contribute to development of infrastructure in a number of ldcs bakewell in addition remittances were also found to promote development of the financial sector one of the key drivers of economic growth unohrlls at the national level remittance flow replenishes foreign reserves helps maintain stability of the foreign exchange value of domestic currencies and provides the purchasing power needed to import goods services capital machineries and other imports of developmental importance on the other side the local currency released against the remittance flows that accrue to the households of migrant workers helps meet their consumption and investment demands