This is one of the side effects of the Covid-19 pandemic and its negative impact on the economy.
The flow of money sent by diasporas to their countries of origin is drying up.
The World Bank projects a 14% drop by 2021 in capital transfers from foreign workers.
The decline will reach 7% this year, to $ 508 billion, then 7.5% next year, to reach $ 470 billion.
If the decline is mainly due to the collapse of growth in many countries and the deterioration of employment, linked to containment measures, the institution also highlights the weakness of oil prices and the depreciation of currencies.
By citing the example of the ruble, which causes a drop in remittances from Russia.
The decrease, which will affect all regions, will be more marked for Europe and Central Asia (16% in 2020 and 8% in 2021), followed by the Asia-Pacific region, the Middle East and Africa .
This shortfall will weigh on the finances of developing countries, especially the poorest, which are suffering from increased debt.
Especially since the money of the diaspora represents the first source of external financing.
It is well ahead of official development assistance and even foreign direct investment ($ 534 billion in 2019 against 548 billion in transfers from migrants).
The gap will widen further,
insists the World Bank, due to the sharp drop in direct investment, which reached 49% in the first half of the year.
