Global Remittances Decline Outpaces Great Recession

Money sent by migrants back to their home countries has taken a steep decline in 2020 and is expected to continue decreasing.

According to data published by the World bank and collected by the Pew Research Center, global remittances are projected to fall by a record 20 percent this year. Some of the largest declines will be felt in areas of Europe, Central Asia and Sub-Saharan Africa.

The projected decline in remittances back to migrants’ home countries is much larger than what was felt globally during the Great Recession in 2009, where areas of Europe and Central Asia saw just a 15 percent decline compared to a projected 28 percent decline in 2020. Sub-Saharan Africa is projected to see a 23 percent decline in remittances compared to a net zero decline in 2009.

Overall, the top remittance-sending countries like the U.S., Saudi Arabia and United Arab Emirates have all experienced some of the harshest COVID-19 restrictions during the pandemic. This has greatly contributed to the projected fall in remittances, and countries dependent on these payments – like the Palestinian territory, Haiti and Nepal – could soon feel the consequences of these restrictions through a decline in money sent home.