The remittance effect: A lifeline for developing economies through the pandemic and into recovery

Understanding the role and importance of remittances is particularly important at the current juncture, with the global economy experiencing a uniquely sharp and synchronized shock as a result of COVID-19. This report examines the available evidence on remittance flows and their potential economic effects. The report explores and shows how remittance flows remain a crucial lifeline in supporting developing economies through the current pandemic crisis and into the recovery.

What you will learn:

• Remittances are an underappreciated but valuable source of financing for developing countries to attain sustainable development goals and support households and economies.
• Remittance flows tend to remain relatively stable through the business cycle, thereby having the potential to support households in the face of economic adversity.
• Cross-border remittances represent migrants' ongoing involvement with their family, home nation, and community.