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If you depend solely on relations abroad for funds to support daily living or schooling then hard times are before you.
This is because remittances are expected to decline by about 23.1% in sub-Saharan Africa, and Ghana will be one of the hardest hit.
Many Ghanaians depend on their relations abroad particularly the USA, Germany, France, UK, Italy amongst others to survive.
And Ghana which is ranked 11th in terms of remittances to Africa in 2019, according to the World Bank will be the hardest hit. The country registered remittances of about 5% of Gross Domestic Product last year, about US$3.5 billion.
According to the World Bank, the amount of money migrant workers remit home is expected to decrease by almost US$110bn this year as the COVID-19 pandemic increases unemployment across the world.
At the same time, remittances to low- and middle-income countries (LMICs) are projected to fall by nearly 20% to US$445 billion “representing the loss of a crucial financial lifeline for many vulnerable households”.
Describing the decrease as the worst in recent history, including the 2008 financial crisis, the Washington-based development bank said migrant workers were especially vulnerable to losing their jobs during coronavirus lockdowns which are still largely in place across the developed world.
The World Bank said studies showed that remittances alleviated poverty in lower- and middle-income countries, improved nutrition, were linked to higher spending on education, and reduced child labour in disadvantaged households.
“A fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs,” it said.
Europe will top the decline in remittance flows followed by Central Asia and Sub Saharan Africa.
East Asia and the Pacific, which includes Indonesia and the Philippines, follows suit.
Source: MyNewsGh.com
