Global remittances are projected to say no by about 20 per cent this year thanks to the COVID-19-induced depression, the World Bank Group (WBG) said.
The projected fall, which might be the "sharpest decline" in recent history, is essentially thanks to a fall within the wages and employment of migrant workers, who tend to be more susceptible to loss of employment and wages during a depression in a host country, the WBG said during a statement on Wednesday, reported Xinhua press agency.
Remittances to low and middle-income countries are projected to fall by 19.7 per cent to US $445 billion, representing a loss of an important financing lifeline for several vulnerable households, consistent with the statement.
"Remittances are a vital source of income for developing countries," said World Bank Group President David Malpass, noting that remittances help families afford food, healthcare, and basic needs.
Malpass said "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."
"As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities' access to these most basic needs," said the president.
Remittance flows are expected to fall across all International Bank for Reconstruction and Development Group regions, most notably in Europe and Central Asia (27.5 per cent), followed by Sub-Saharan Africa (23.1 per cent), South Asia (22.1 per cent), the center East and North Africa (19.6 percent), Latin America and therefore theCaribbean (19.3 per cent), and East Asia and therefore the Pacific (13 per cent).