Despite 2020 being a difficult year for most economies, some countries’ remittance flows have proven more resilient than expected during the COVID-19 pandemic, according to a World Bank report.
June 15, 2021 | Wendy Weng- Various government programmes in host countries supported affected businesses and migrant workers
- The use of formal channels and digital channels for remittance transfer increased
- India has remained the largest remittances recipient, while the Philippines experienced a decline in remittance inflows
The officially recorded global remittances reached $702 billion in 2020, a drop of 2.4% from $719 billion in 2019, according to the World Bank's Migration and Development Brief released in May 2021. The decline was much smaller than previous predictions. In April 2020, the World Bank predicted a 20% decline in global remittances because of the economic crisis caused by the pandemic which negatively impacted wages and employment of migrant workers. In October 2020, it adjusted its estimates to a 14% drop.
“The resilience of remittance flows is remarkable. Remittances are helping to meet families’ increased need for livelihood support,” said Dilip Ratha, lead author of the report. The remittances are lower than the true amount of flows which also includes informal flows. The World Bank has called for better collection of data on remittances.
Main drivers of remittance flows
Governments in many host countries introduced measures to bolster the economy which resulted in better-than-expected economic conditions. A variety of government programmes provided support to affected businesses and cushioned a decline in the wages and employment of migrant workers. Meanwhile, some countries also adopted measures to encourage migrants to remit money home.
In addition, the resilience of remittances was also supported by greater use of formal channels to transfer remittances. Apart from a broad shift from informal to formal channels, digital channels also gained popularity in 2020. These were driven in part by the lockdowns and widespre...
Categories:
Keywords:Global Remittances, Covid-19, Data, Digital Banking, Employment
Despite 2020 being a difficult year for most economies, some countries’ remittance flows have proven more resilient than expected during the COVID-19 pandemic, according to a World Bank report.
June 15, 2021 | Wendy Weng- Various government programmes in host countries supported affected businesses and migrant workers
- The use of formal channels and digital channels for remittance transfer increased
- India has remained the largest remittances recipient, while the Philippines experienced a decline in remittance inflows
The officially recorded global remittances reached $702 billion in 2020, a drop of 2.4% from $719 billion in 2019, according to the World Bank's Migration and Development Brief released in May 2021. The decline was much smaller than previous predictions. In April 2020, the World Bank predicted a 20% decline in global remittances because of the economic crisis caused by the pandemic which negatively impacted wages and employment of migrant workers. In October 2020, it adjusted its estimates to a 14% drop.
“The resilience of remittance flows is remarkable. Remittances are helping to meet families’ increased need for livelihood support,” said Dilip Ratha, lead author of the report. The remittances are lower than the true amount of flows which also includes informal flows. The World Bank has called for better collection of data on remittances.
Main drivers of remittance flows
Governments in many host countries introduced measures to bolster the economy which resulted in better-than-expected economic conditions. A variety of government programmes provided support to affected businesses and cushioned a decline in the wages and employment of migrant workers. Meanwhile, some countries also adopted measures to encourage migrants to remit money home.
In addition, the resilience of remittances was also supported by greater use of formal channels to transfer remittances. Apart from a broad shift from informal to formal channels, digital channels also gained popularity in 2020. These were driven in part by the lockdowns and widespre...
Categories:
Keywords:Global Remittances, Covid-19, Data, Digital Banking, Employment
