Migrant Workers: Migrants sent $605 billion home in 2021, more by mobiles: UN

Migrant employees despatched dwelling an estimated $605 billion to low- and middle-income nations final yr, a UN research mentioned Thursday, boosted by a rise in funds despatched by way of cellphones.

World remittances rose 8.6 % in comparison with 2020 and are projected to develop to $630 billion in 2022, in line with the Worldwide Fund for Agricultural Improvement (IFAD).

Such funds are a significant supply of earnings for a lot of low-income households, with round 800 million relations anticipated to learn in 2022.

Between now and 2030, international remittances will quantity to $5.4 trillion, the equal of twice the GDP of Africa in 2021, IFAD has estimated.

“Remittances raise individuals out of poverty, put meals on the desk, pay for schooling, cowl well being bills, permit housing investments and plenty of different household targets past consumption,” IFAD president Gilbert Houngbo mentioned.

Nonetheless, the report warned that the upward development would doubtless sluggish this yr as inflation erodes wages, and because of Russia’s invasion of Ukraine.

Many nations in central Asia rely upon remittances from Russia, with funds accounting for as a lot as 30 % of their GDP, mentioned the report.

However the decline within the worth of the ruble and the financial affect of sanctions has triggered a “sharp decline in transfers”, IFAD mentioned.

A lot of the cash despatched dwelling by migrant employees is transferred by way of bricks-and-mortar establishments with shoppers paying money, however the coronavirus pandemic noticed a essential shift in the direction of digital.

With lockdowns and border closures making bodily companies harder to entry, cell phone funds jumped by 48 % in 2021.

They nonetheless solely accounted for 3 % of the worldwide complete, however Pedro De Vasconcelos, supervisor of the Financing Facility for Remittances at IFAD, mentioned the development is ready.

“Money continues to be king, however it’s dropping floor,” he informed AFP.

This issues as a result of cell funds are extra handy, notably for these in rural areas, and are additionally cheaper.

In Africa — which obtained $94 billion in remittances in 2021, a rise of 13 % on 2020 — switch charges are the best on this planet.