• Friday, June 14, 2024
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COVID-19 pandemic triggers increase in global remittances – WorldRemit

COVID-19 pandemic triggers increase in global remittances – WorldRemit

Recent research from WorldRemit, a leading global payments company, has found that the Covid-19 pandemic has continued to trigger an increase in global remittances.

The results from WorldRemit’s study of more than 3,000 of its customers paint a striking picture of the importance of remittances to the loved ones of immigrants, alongside the impact we know it has on the global economy.

“We understand the unique challenges migrants face on a day-to-day basis when supporting loved ones overseas, whether it be helping to ensure their family members get access to or have money to pay for the basic cost of living expenses,” said Karen Jordaan, head of WorldRemit at the UK.

“WorldRemit understands the needs of our customers and strives to offer a safe, fast, and convenient service. We are also encouraged by our customers and how they are investing in the future, namely education and new business ventures.”

According to the research, 68percent of respondents sent money abroad at least monthly, with a further 28percent sending it multiple times a year.

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The pandemic has had a significant effect on the amounts of money sent, particularly for the key reasons people send money abroad.

When asked to provide context to the reasons people send money home to love ones, the most common were daily expenses, gifts, medical expenses and education.

“As a result of COVID, people sent more money abroad for the following categories during 2021: 44percent cited the amount they send for medical expenses has increased, 41percent cited the amount they send for daily expenses has increased, 38percent cited the amount they send for utilities increased, 35percent cited the amount they send for education increased,” the research findings said.

The research stated that countries with the highest remittances were the Philippines (18percent), Nigeria (11.5percent), and Ghana (10.5percent), which have all seen significant GDP growth.

The research said the trend is likely to continue as these countries continue to recover rapidly from the COVID-19 pandemic.