Majalat
Migration and mobility

In its latest Migration and Development Note, the World Bank revealed that remittances to low- and middle-income countries are projected to have grown a strong 7.3% to reach $589 billion in 2021. This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite a severe global recession due to COVID-19.

Michal Rutkowski, World Bank Global Director for Social Protection and Jobs, noted that “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.”

Remittances are projected to continue to grow by 2.6% in 2022 in line with global macroeconomic forecasts. A resurgence of COVID-19 cases and re-imposition of mobility restrictions poses the biggest downside risk to the outlook for global growth, employment and remittance flows to developing countries. The rollback of fiscal stimulus and employment-support programs, as economies recover, may also dampen remittance flows.