Side event on Enhancing the contribution of migrants in the post Covid-19 era

Overview

Despite the onset of the COVID-19 pandemic, international remittance volumes to lowand middle- income countries held firm throughout 2020, recording only a modest 1.6 per cent decline to US$549 billion, in the face of one of the deepest recorded global recessions, and increased again in 2021 to US$589 billion, registering a 7.3 per cent increase.

This was possible thanks to the resilience of hundreds of millions of migrants who continued to send money to their families and communities back home, regardless of the economic challenges they were facing in their host countries. Remittances are critically important for developing countries, in particular for rural and more vulnerable communities, particularly in times of crisis. Almost half of all remittance flows go to rural areas, accounting for over US$200 billion annually.

The pandemic, while creating major challenges, has also created new opportunities for the global remittance market. Migrants increased their use of regulated and digital channels in many corridors. Increased use of digital channels in many cases brought down the costs of transferring remittances. Private sector operators adapted their business models and policy makers provided the necessary enabling environment.

The webinar will also briefly discuss the impact on remittances of policies and measures to combat money laundering and the financing of terrorism. Lastly, the webinar will consider the potential for concessional financing facilities for migrants.

Document

• Concept note