(WORLD BANK) – Global remittances are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown.
The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country.
Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.
In 2020, remittance flows to the region is estimated to fall by 19.3 per cent. Remittance costs: The average cost of sending $200 to the region was 5.97 per cent in the first quarter of 2020.
According to World Bank Data SVG received 47 Million Dollars in remittances in 2019, this accounted for 5.4 per cent of its GDP.