The coronavirus pandemic has severely impacted economies around the globe, leading to an expected 14 percent drop in remittances by next year, according to data from the World Bank. Remittances—critical funds that migrants send back to their home nations—serve as a lifeline for many developing countries.
This decline is particularly painful in Venezuela, where remittances rank second only to oil exports as a significant source of income. The reduction in these funds exacerbates challenges for Venezuelan families who rely on money sent by relatives working abroad to meet daily needs such as food, healthcare, and education.
With the global economic slowdown, many migrant workers are earning less or facing unemployment, limiting their ability to support loved ones back home. This situation not only affects individual households but also has broader implications for Venezuela’s economy, which is already grappling with multiple crises.
The drop in remittances underscores the far-reaching effects of the pandemic on vulnerable economies and highlights the need for international support to mitigate the impact on affected communities.
Reference(s):
cgtn.com
