Foreign workers send money to their countries to write a new history | World Bank News

Remittances to low- and middle-income countries are expected to grow by 7.3 percent this year from 2020, the World Bank said.

The remittances sent to foreigners around the world are expected to arrive this year, due to relocation to Latin America and to US relocation, according to World Bank forecasts.

Remittances to low- and middle-income countries are expected to grow 7.3% this year from 2020, a development lender from Washington said in a report Wednesday. Relocation to Latin America and the Caribbean is expected to rise by 21.6%, driven by factors including Covid-19 concerns, hurricanes, the US economy and the influx of US migrants.

The global increase is larger than the 2.6% predicted by the World Bank in May after a 1.6% decline in 2020 – much lower than the predicted 20% fall. Immigrants from foreign families have helped to support people suffering from economic hardship in their home countries.

Exports to the Middle East and North Africa are projected to rise 9.7%, 8% in South Asia, 6.2% in sub-Saharan Africa and 5.3% in Europe and Central Asia. In East Asia and the Pacific, remittances may have dropped by 4%.

“The money from the immigrants has greatly contributed to the government’s remittances program to help families experiencing financial hardship during the Covid-19 crisis,” Michal Rutkowski, World Bank’s chief of public works and employment, said in a statement. “Funding for the proceeds to help with the financing of damaged households should be a major part of government policy to address the global epidemic.”

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In 2021, the five people who received the most money were India, China, Mexico, the Philippines and Egypt.

As part of the overall household income, the main earners are Tonga, Lebanon, Kyrgyz Republic, Tajikistan, and Honduras.

The cost of remittances at international borders reached 6.4% in the first quarter of this year, double the target of the 3% target set for the bank’s sustainable development goals. Shipping to sub-Saharan Africa is very expensive at 8%

The US was the largest donor country by 2020, followed by the United Arab Emirates, Saudi Arabia, and Switzerland.

U.S. officials have met with a record of more than 1.7 million people who crossed the border with Mexico last year. Most of the migrants arrested in 2021 – about 1.4 million – came from Mexico and the Northern Triangle of Honduras, El Salvador and Guatemala. But Covid-19 encouraged thousands of people, mostly from Latin America and the Caribbean, to move north, which disrupted Biden management’s efforts.

The increase in immigration to the US is probably the “most important factor” behind the increase in remittances in Latin America and the Caribbean, according to the World Bank.

“In particular, the dramatic increase in remittances to Mexico could reflect the amount of money that migrants to Honduras, El Salvador, Guatemala, Haiti, Venezuela, Cuba, and many other countries receive,” said the lender.

The negative effects of Covid-19 in countries and the devastation of hurricanes Grace and Ida have also contributed to increased shipping costs to Mexico and Central America, the agency said.