Dilip explains why remittance flows have proved to be resilient during the COVID-19 crisis. In 2020, officially recorded remittance flows to low- and middle-income countries reached $540 billion, only 1.6% below the $548 billion seen in 2019. Remittances exceeded foreign direct investment flows by a wider margin in 2020. Excluding China, remittance flows surpassed the sum of foreign direct investment and official development assistance. Remittances have therefore become an important consumption smoothing mechanism for the recipient households and, as such, they form an increasingly important (private) element of global social protection systems.
on-demand webinar
Dilip Ratha
Lead Economist, Migration and Remittances, Head of KNOMAD, World Bank.
Mohit Davar
Chairman at IAMTN