World Bank: Decline of Money sent by Migrant Workers by 110 billion USD

On April 22, 2020, the World Bank announced that the amount of money sent back by the migrant workers to their home countries is to decrease by 110 billion USD.

Highlights

• Due to the COVID-19 lock down, the remittances to low-income and middle-income countries are to fall by 20%. The decline in remittance is the highest in the history. This is greater than 2008 financial crisis.
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• In 2019, the remittance reached all time high of 554 billion USD. The World Bank expects that the foreign remittances are expected to grow next year and recover by 5.6%. This year, in 2020, the remittances are expected to be between 445 billion USD and 470 billion USD.

Migrant Workers

• The major regions of the world receiving remittances from Migrant workers include sub Saharan Africa, South Asia, South America.

Implications

• These remittances helped countries alleviate poverty, improve nutrition and reduce child labour.

International Labour Organization

• According to ILO, the migrant workers account to 258 million in the world.