Many millions of migrants lost their jobs this year. This reduces remittances to their home countries.

03.09.2020 Every year migrants send hundreds of billions of dollars to relatives in their countries of origin. In 2019, according to the World Bank, these so-called remittances in countries with low and middle incomes reached a record sum of 554 billion dollars and thus exceeded foreign direct investment for the first time. Due to the economic crisis triggered by Covid-19, cross-border cash flows are likely to shrink sharply this year: In a new report, the Asian Development Bank ADB fears that global transfers will be up to 109 billion dollars lower. For households at risk of poverty, the absence of this “informal social assistance” can be a threat to their existence. The ADB expects serious consequences above all for countries in which remittances make a significant contribution to gross domestic product - this is particularly true for smaller Pacific states such as Tonga and Samoa or larger countries such as Kyrgyzstan, Tajikistan or the Philippines.

Photo: USDA / Bob Nichols