Migrant workers' remittances expected to plunge

The World Bank estimates the total amount of remittances to be made by migrant workers to their home nations this year will plunge partly due to job losses caused by the coronavirus pandemic.

The institution released a report last month that showed remittances to low- and middle-income countries in 2020 are expected to fall by 109 billion dollars, or 19.7 percent, from last year's level.

The bank said the drop would be the "sharpest decline in recent history", and much larger than what was recorded in 2009 when the world was reeling from a global financial crisis.

The bank largely attributed the projection to declines in wages, and a downturn in the employment of migrant workers amid an economic crisis brought on by the pandemic and subsequent global shutdown.

When the number of migrant workers was rising worldwide, remittances to low- and middle-income nations had grown by more than 1.5 times over the past decade, reaching an all-time high of 554.2 billion dollars last year.

Such remittances have been supporting the livelihoods of families back home, and serving as a source of foreign currency in countries on the receiving end.

Dilip Ratha, the World Bank's lead economist on migration and remittances, warned that many families in developing nations may fall into poverty and may not be able to afford food, medicines, or schooling for their children.

He said that although the array of steps that can be taken immediately to prevent such a situation is limited, relevant nations should work to protect the lives and health of migrant workers.

Ratha also underscored the importance of long-term measures such as nurturing developing economies, and creating private-sector jobs so that people can find suitable work in their home countries.

SOURCE: NHK World

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