The World Bank projected that the amount of money migrant workers send home is expected to fall 14% by 2021 compared with levels before the COVID pandemic in 2019.
Flows of remittances to low and middle-income countries are set to fall by 7% to $508 billion in 2020, before a further decline of 7.5% to $470 billion in 2021. This was stated in the World Bank’s Migration and Development Brief. Tepid economic growth and employment levels in countries hosting migrants, weak oil prices and depreciation of the currencies of remittance-source countries against the U.S. dollar are and will be factors behind the decline.
“The impact of COVID is pervasive when viewed through a migration lens as it affects migrants and their families who rely on remittances,” said Mamta Murthi, vice president for human development at the World Bank, adding that the World Bank will continue working with partners and countries to keep the remittances flowing.
Europe and East Asia will suffer the steepest drop in remittances in 2020 and 2021, of 16% and 11%, respectively, with central Asia also suffering a 8% drop.
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