April 22

Migrant Wages Sent Home Set to Drop $142 Billion in 2020

By Tom Arnold, Andrea Shalal

Global remittances are set to tumble by $142 billion in 2020, the sharpest fall in recent history, the World Bank estimates, as the coronavirus crisis chokes off a cash lifeline for hard-pressed households in poorer countries.

The World Bank on Wednesday said that drop of almost 20% in money migrant workers send home – about four times greater to low- and middle-income countries than during the 2009 financial crisis – would largely be due to a fall in their wages and employment overseas.

“Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” said World Bank Group President David Malpass.

Photo courtesy of Monito.

Source: Reuters (link opens in a new window)

Coronavirus, Finance