Search
Close this search box.
Search
Close this search box.

How Remittances Have Been Impacted By The Covid-19 Pandemic

Remittances

Whilst much of the world is still in the grips of the Covid-19 pandemic, it is fair to say that for most of the world’s biggest economies, things are close to getting back to normal. This pandemic has of course impacted the lives of billions, and it is only now that we are starting to see the economic fallout from the world response to the virus outbreak. This was an unprecedented occurrence that left even the wisest experts in finance unable to make accurate predictions. Now that we have the data, however, we can get a better idea of the economic impact which the pandemic has had.

With this in mind, we are today going to focus on remittances, money sent through apps like Ria Money transfer, and through more traditional routes like banks. The large majority of this money is sent from migrant workers back to their home nation, and here is how it has changed during the pandemic.

Confusing Figures Around Remittances

There are two big impacts that Covid-19 has had on the volume of remittance sent, which have contributed towards some interesting figures. The first is that when so many countries were in lockdown, those remittances slowed as migrant workers struggled to earn a living. Conversely, however, we have then seen the volume increase as migrant workers predominantly in first world countries got back to earning, whilst their relatives in the homeland still struggled.

Countries Most Dependent on Remittances

We can look at the volume of remittances with two measures: one as a percentage of GDP and also in terms of actual cash amount. Here are the top 3 countries based on each of those metrics:

Breakdown by GDP Percentage

Naturally, it is the smaller nations making up this list, who receive a steady flow of remittances but have very low GDP which propels them up the list.

Tonga –                 39% of GDP

Somalia –              34.8% of GDP

Kyrgyz Republic – 31.3% of GDP

In all of these examples, the cash value of remittances has reduced, but so too has GDP which gives a very similar reading to the figures from 2020.

Breakdown by Cash Value

Looking at the actual cash value of remittances gives us a much clearer idea as to which countries are most reliant on cash transfers from abroad.

India – USD $89.6 billion, this is an increase of 3% on 2020

China – USD $59.5 billion, an increase of 6% on 2020

Mexico – USD $51.6 billion, the country with the largest yearly increase, 27.1% up from 2020

As you can see, there have been increases in all of the top nations with regards to the cash value of remittances, owing to the Covid-19 pandemic. The World Bank Global Director for Social Protection and Jobs Michal Rutkowski said the following regarding this data and the conditions in which we are living.

“Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis. Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic,”

This year will continue in a similar trend but 2023 is expected to see a leveling out of remittances according to a recent report by the World Bank. 


Subscribe to Our Newsletter

Related Articles

Top Trending

famous black baseball players
Top 60 Famous Black Baseball Players of All Time [Updated]
Generative AI in Adobe Acrobat
Generative AI in Adobe Acrobat: Chat Seamlessly with Documents!
losmovies alternatives
180 LosMovies Alternatives for Watching Movies and Series in 2024
How AI Influences Stock Markets
How AI Influences Stock Markets More Than Inflation Data: Key Insights
February 21 Zodiac
February 21 Zodiac Traits: Unveiling Astrological Secrets

LIFESTYLE

Egyptian Cotton Sheets for Your Bed
A Beginner's Guide to Choosing the Perfect Egyptian Cotton Sheets for Your Bed
Long Lehenga Choli
Elegance Redefined: Navigating the Diverse World of Long Lehenga Choli Designs
valentines day outfits
Top 20 Trendy Valentine's Day Outfits in 2024 For Every Occasion
eldritch foundry
Unleash Your Imagination With Eldritch Foundry Custom Miniatures
jayda wayda braids
How Long Do Jayda Wayda Braids Last [Durability and Maintenance Tips]

Entertainment

losmovies alternatives
180 LosMovies Alternatives for Watching Movies and Series in 2024
cartoon characters with big noses
20 Famous Cartoon Characters with Big Noses of All Time [Ranked]
Gillian Anderson and David Duchovny
Gillian Anderson and David Duchovny Reunite and Reflect on Their X-Files Legacy
Lewis Gratz Fell
The Mysterious Life and Death of Lewis Gratz Fell: Aileen Wuornos' Ex-Husband
2024 People's Choice Winners
2024 People's Choice Winners: Swift, Barbie, Grey's Triumph!

GAMING

User Experience Design in Online Casinos
The Role of User Experience Design in Online Casino Platforms
New Online Service for Fans of Sports Betting and Casino Games
A New Online Service for Fans of Sports Betting and Casino Games
Are Online Gaming Bonuses Worth Pursuing
Are Online Gaming Bonuses Worth Pursuing These Days?
why does turles look like goku
Why Does Turles Look Like Goku: The Saiyan Secret Explained
Cricket Betting Apps
Real Money Betting Apps for Cricket Played Online Today

BUSINESS

Inheritance Tax
Dodge the Inheritance Tax Boogeyman – Legally, and with a Smile!
Top 5 AI Stocks for Millionaire Dreams
Top 5 AI Stocks for Millionaire Dreams: Invest Now!
Economic Recessions and Global Inflation
The Impact of Economic Recessions and Global Inflation: Insights and Strategies for 2024
will amazon deliver to a po box
Will Amazon Deliver to a PO Box? Your Guide to Shipping Restrictions and Options
Cross-Channel Marketing in eCommerce
Navigating the Challenges of Cross-Channel Marketing in eCommerce

TECHNOLOGY

Generative AI in Adobe Acrobat
Generative AI in Adobe Acrobat: Chat Seamlessly with Documents!
5 Battery Care Tips to Maximize Your Smartphone Usage
How to Care for Your Smartphone to Make the Battery Last Longer
Apple Vision Pro
Top 7 Reasons Users Are Returning Apple Vision Pro: Insights from Reddit
Buying Instagram Followers
The Fast Lane to Popularity: Why You Should Consider Buying Instagram Followers
Apple Faces $539M Spotify Antitrust Fine
Apple Faces $539M Spotify Antitrust Fine: What You Need to Know

HEALTH

Top 10 Easy Stress & Anxiety Relief Techniques
Top 10 Easy Stress & Anxiety Relief Techniques - Find Calm Fast
Advantages and Challenges of Using Peptides
Advantages and Challenges of Using Peptides in Medicine Manufacturing
Long Covid Impact Millions Children Pregnant Studies
Studies Reveal: Long Covid Affects Millions, Including Kids & Pregnant Individuals
How Egyptian cotton sheets can improve your health
A Good Night’s Sleep: How Egyptian Cotton Sheets Can Improve Your Health
Advantages of Investing in a High-Quality Comforter Set
Indulge in a Luxurious Sleep: The Advantages of Investing in a High-Quality Comforter Set