Remittances From Mexican Migrants In The United States During Covid-19
Remittances From Mexican Migrants In The United States During Covid-19

Author(s): Rodolfo García Zamora, Selene Gaspar Olvera
Subject(s): Social Sciences, Psychology, Essay|Book Review |Scientific Life, General Reference Works, Geography, Regional studies, Sociology
Published by: Transnational Press London
Keywords: Mexico; remittances; covid-19; United States; migration
Summary/Abstract: According to the World Bank, remittances around the world will fall about 20% as a result of the economic crisis created by the COVID-19 pandemic and associated lockdowns. The projected drop, which will be the sharpest fall in recent history, is largely due to the collapse of migrant workers’ wages and employment—workers who are often more vulnerable to the loss of jobs and wages during economic crises in the countries that host them. In light of these predictions, remittances will fall 19.7%, dropping to US$445 billion dollars compared to US$554 billion dollars the previous year. The World Bank predicts that the biggest drops will be in Europe and Central Asia (27.5%), followed by Sub-Saharan Africa (23.1%), South Asia (22.1%), the Middle East and North Africa (19.6%), Latin America and the Caribbean (19.3%) and East Asia and the Pacific (13%). Even when taking this trend into account, the institution considers that remittances will continue to be a very important source of financing for recipient countries compared to direct foreign investment, which it estimates will fall by more than 35% in 2020. This maintains the trend seen in recent years of larger amounts of remittances than direct foreign investment (World Bank, 2020).

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