Rich world's jobs crisis jolts money flows to millions

But now, after the coronavirus hit and he lost his job in early March, Sosa has burned through his savings and the wire transfers have stopped.

The steep drop in remittances carries dire consequences for the many countries around the world that are heavily dependent on such payments and whose economies are already reeling from a slump in demand triggered by the coronavirus crisis. The risks range from rising poverty and hunger to balance-of-payments emergencies for developing economies reliant on the cash.

The world’s two largest sources of remittance payments have been severely disrupted. The United States, which tops the World Bank’s list, accounting for some US$68.50 billion of payments globally in 2018, has seen unemployment skyrocket, with more than 40 million jobs lost since March. The Gulf economies, the world’s No. 2 source, have been hammered by lower oil prices.The tightening of the U.S. remittance spigot is expected to reverse a multi-year boom in payments to families in Latin America.

Elizabeth, who lives near Guatemala’s capital city, used to receive about US$1,200 a month from her daughter’s fiancé, who worked as a cook in the United States. But the payments stopped after coronavirus shuttered the two diners he worked at and dried up his other side jobs. "It's brutal", said Piero Coen, chief executive of AirPak, which says it handles about a fifth of all remittances flowing to the region.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

World coronavirus cases top 6 million as leaders disagree on pandemic responseBRASILIA (AFP) - The number of coronavirus cases worldwide topped six million Sunday, with Brazil registering another record surge in daily infections as divisions deepened on how to deal with the pandemic.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

World COVID-19 cases top 6 million as Brazil toll surgesBRASILIA: The number of COVID-19 cases worldwide has topped six million as the disease spread rapidly across Latin America and political leaders ... WuhanBioWeapon
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Embraer negotiating US$600m bank financing for exportsRIO DE JANEIRO: Brazilian plane manufacturer Embraer SA , the world's third largest commercial jet builder, should obtain US$600 million in credit ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Philippines capital comes back to life although COVID-19 threat lingersMillions of people returned to work in the Philippine capital on Monday as one of the world's strictest and longest coronavirus lockdowns was ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Indonesia capital gears up for post-holiday flow amid virus[JAKARTA] Indonesia's capital Jakarta is anticipating one million vehicles will enter the city as people return from Eid al-Fitr holidays in the midst of the coronavirus pandemic. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

People more important than the economy, Pope says about COVID-19 crisisPope Francis said on Sunday that people are more important than the economy, as countries decide how quickly to reopen their countries from ... He a idiot with Sony support 🖕🏾 Deo Gratias Pontifex
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »