The World Bank expected global remittance flows to decline at the largest rate ever this year, amid the current economic crisis caused by the outbreak of the Coronavirus.
The World Bank expected, through a statement posted on its website, a global decrease of remittances by about 20 percent this year, to reach $445 billion.
According to the World Bank, the expected decline in remittances, which will be the worst in recent history is driven by declining wages and employment for migrant workers who are more vulnerable to job and wage losses during economic crises in host countries.
Studies showed that remittances reduce poverty in low- and middle-income countries, improve nutrition, help higher education spending, and also reduce child labor in low-income families. The decrease in remittances affects the ability of families to spend in these countries, as more of their financial resources will be directed to solving the food shortage and the livelihood needs of the country.
Source (Al-Arabiya.net website, Edited)