‘’Global remittances are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown,’’ the World Bank reports.
Following the World Bank article, the projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country.
‘’Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households,’’ the bank reports.
Billions of in #remittances may be vanishing due to #COVID19, threatening the welfare of millions of families globally . Effective #socialprotection systems are crucial to safeguarding them in a time of crisis. https://t.co/UzhlnJrAUz— World Bank (@WorldBank) April 24, 2020
‘’Studies show that remittances alleviate poverty in lower- and middle-income countries, improve nutritional outcomes, are associated with higher spending on education, and reduce child labor in disadvantaged households,’’ the official website of the World Bank group reads.
Under the article, a fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs.
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