World Bank predicts 14 per cent decline in global remittances

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World Bank predicts 14 per cent decline in global remittances

Thursday, October 29, 2020

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KINGSTON, Jamaica— The World Bank says projections are that global remittances will decline14per cent by 2021 compared to the pre-COVID-19 levels in 2019.

This is according to the latest estimates published in the World Bank's Migration and Development Brief.

According to the World Bank, remittance flows to low and middle-income countries (LMICs) are projected to fall by 7 per cent, to US$508 billion in 2020, followed by a further decline of 7.5 per cent, to US$470 billion in 2021.

The bank noted that the foremost factors driving the decline in remittances include weak economic growth and employment levels in migrant-hosting countries, weak oil prices; and depreciation of the currencies of remittance-source countries against the US dollar.

Vice President for Human Development and chair of the Migration Steering Group of the World Bank, Mamta Murthi , said “the impact of COVID-19 is pervasive when viewed through a migration lens as it affects migrants and their families who rely on remittances.”

“The World Bank will continue working with partners and countries to keep the remittance lifeline flowing, and to help sustain human capital development,” the VP said.

The declines in 2020 and 2021 will affect all regions, with the steepest drop expected in Europe and Central Asia (by 16 per cent and 8 per cent, respectively), followed by East Asia and the Pacific (11 per cent and 4 per cent), the Middle East and North Africa (8 per cent and 8 per cent), Sub-Saharan Africa (9 per cent and 6 per cent), South Asia (4 per cent and 11 per cent), and Latin America and the Caribbean (0.2 per cent and 8 per cent).


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