Global remittance industry has seen a strong performance before the virus outburst and even in 2020 remained strong with a slight fall seen in some of the developing economies. Approximately 281 million migrants and their families rely on remittances for survival. Despite the COVID-19 crisis’ severe economic impacts, remittance flows to low- and middle-income nations (LMICs) continued to persist and swiftly recovered following a significant drop at the outset of the crisis. With the entry of digital remittance players, the global remittance sector has undergone a dramatic upheaval, with digital remittance players putting traditional remittance operators to the test by providing the convenience of payment transfer at a lower cost.

Impact of COVID-19
During the COVID-19 pandemic, global remittance flows proved to be more resilient than expected. Inflows to low- and middle-income nations are particularly affected. Although total remittance inflows were reduced, certain nations saw significant increases during the crisis. Mexico, the world’s third-largest remittance recipient, is among them, as are Egypt, Pakistan, and Bangladesh, the world’s fifth, sixth, and eighth-largest remittance recipients, respectively. India and the Philippines saw the smallest declines among developing countries in 2020 compared to 2019, at 0.2% and 0.7%, respectively.


Impact of the Russia-Ukraine War
The war in Ukraine comes at a particularly perilous time for the Federal Reserve and other central banks. They were caught off guard by the recent spike in inflation, which was mostly due to the economy’s unusually strong recovery. In January 2022, consumer prices in the US increased by 7.5% from 2021, the largest increase since 1982. Inflation in Europe reached a new high of 5.8% last month, compared to a year ago, for the 19 nations that use the euro currency.


Remittance Inflow and Outflow
The US, the UAE, and Saudi Arabia were the top three source nations for remittance outflows in 2020. The average cost of delivering USD 200 to LMICs stayed high during the fourth quarter of 2020, at 6.58%, significantly over the Sustainable Development Goals’ target of 3%.

Latin America and the Caribbean, South Asia, the Middle East, and North Africa had an increase in remittance inflows, whereas East Asia and the Pacific, Europe and Central Asia, and Sub-Saharan Africa witnessed declines. India, China, Mexico, the Philippines, and the Arab Republic of Egypt were the top five remittance recipients in current USD terms in 2021.


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https://www.makreo.com/report/global-money-remittance-market-and-forecast-to-2027-impact-assessment-of-covid-19-and-russia-ukraine-war