Global remittances from migrants to Developing countries will grow 7.3% this year, reaching 589,000 million dollars, driven by the 21.6% rise in shipments destined for Latin America and the Caribbean, according to the latest forecasts by the World Bank (WB).
The five countries that will receive the most remittances this year are India, China, Mexico, the Philippines and Egypt.
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The robust rebound forecast for this year comes after the 1.7% decline in 2020, amid the global recession caused by the Covid-19 pandemic.
“Migrant remittance flows have largely complemented government cash transfers in support of families that suffered hardships during the crisis.“Michal Rutkowski, WB Director of Social Protection and Employment, said in a statement.
For this reason, Rutkowski stressed that “facilitating these shipments to offer relief from household budgetary difficulties should be a key component of government policies“.
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For the second consecutive year, the World Bank report noted, migrant remittances will exceed the sum of foreign direct investment and international development assistance to these countries, with the exception of China.
The cost of shipments continued to rise, with an average of 6.4% of the amount, something that the international organization considers “too high“.
Among the causes contributing to the sharp increase in remittances are “determination“of migrants in supporting their families in times of need, as well as economic recovery in Europe and the US, based on the aggressive fiscal stimulus and employment protection programs.
By regions, Latin america and the caribbean It is the one that is estimated to register a greater boom, with an increase of 21.6% compared to last year; followed by the Middle East and North Africa, with an increase of 9.7%; and South Asia, with 8%.
Mexico It is the Latin American country that will receive the most remittances, with about 53,000 million dollars this year, which represents 42% of the total for the region.
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The World Bank indicated that a factor “significant“of the increase in Latin America is in”the increase in the number of migrants in transit in Mexico, and the remittances they receive from abroad to defray their living and travel costs“.
Something similar happens in Guatemala and Colombia, as well as Egypt and Morocco, transit areas for African and Middle Eastern migrants.
The importance of remittances is reflected in its strong weight in the economies of several Latin American and Caribbean countries, where it is around 20% of gross domestic product: such as Honduras (26.6%), El Salvador (26.2%), Jamaica (23.6%) and Guatemala (18%).
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EFE
