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World Bank Predicts Sharpest Decline of Funds For Services to Caribbean Amid Coronavirus Pandemic

  • Staff Consortium
  • April 23, 2020

WASHINGTON — The World Bank has predicted the sharpest decline of remittances to Latin America and the Caribbean, saying that global remittances on a whole are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown. “The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country,” said the Washington-based financial institution in a statement on Wednesday. It said remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to US$445 billion, “representing a loss of a crucial financing lifeline for many vulnerable households.” The World Bank pointed to studies that show that remittances alleviate poverty in lower- and middle-income countries, improve nutritional outcomes, are associated wi...