World Bank Predicts Sharp Drop in Remittances to Developing Countries Amid Pandemic

Remittances to low and middle income countries will decrease by 19.7% to reach $445 billion; which represents a loss of basic financial resources for vulnerable families in these countries, according to the World Bank’s recent periodic report.

Yet, "remittances are a vital source of income for developing countries," said David Malpass, President of the World Bank Group. According to him, the ongoing economic stagnation, caused by the coronavirus pandemic, has "a severe impact on the ability of migrants to send money home, and makes the resumption of activities in developed economies necessary".

Remittances would decrease in all regions where financial institutions, such as the World Bank, operate, particularly in Europe and Central Asia (27.5%), followed by Sub-Saharan Africa (23.1%), South Asia (22.1%), the Middle East and North Africa (19.6%), Latin America and the Caribbean (19.3%) and East Asia and the Pacific (13%), the report states.

To reverse this trend, the World Bank’s specialist in international migration in relation to global development, Dilip Ratha, also known for his role in adding remittances to discussions on migration and development, said that "rapid measures that facilitate the transfer and receipt of money will provide the support that immigrants and their families desperately need. This support includes the treatment of money transfer services if necessary and extremely important, with their provision to migrants".