For communities already in crisis, a drop in remittances during COVID-19 can mean life or death

In 2018, people living in low- and middle-income countries received $529 billion dollars in remittances from relatives and others living and working abroad. In 2019, remittances reached a record $554 billion, i and were expected to be the largest source of international financial support, exceeding both international development assistance and foreign direct investment. Remittances have exceeded official development assistance three-fold since the mid-1990s.ii But COVID-19 threatens this lifeline, with the estimated 20% drop in these flows as a result of the pandemic threatening to push already vulnerable families further into poverty. Remittances provide a vital resource for hundreds of millions of families to escape poverty and meet basic needs during humanitarian crises. For many, remittances are a primary income source that people rely on for everyday necessities like food, shelter, medicine, and school fees.iii In many cases, direct recipients of remittances also use a part of the money they receive from abroad to support friends and relatives within their own countries.