What does sending $650 billion overseas mean for migrant workers?

Millions of migrants around the world send money or in-kind transfers known as remittances to their family members or communities in their countries of origin. Remittances have grown substantially over the past two decades, rising from about $128 billion in 2000 to $831 billion in 2022, according to the World Bank. In June, the World Bank reported that remittances to low and middle income countries alone reached an estimated $656 billion last year, surpassing foreign direct investment and development aid. The United States, Western European countries, and Gulf countries like Saudi Arabia, Qatar, and the United Arab Emirates are major sources of remittances. The rise in remittances is attributed to the COVID-19 pandemic and the development of fintech platforms that make transfers faster and cheaper. These platforms have tapped into the remittance market, bringing down the average cost by 30 percent over the past decade. Remittances serve as a bridge that connects diaspora communities with their homelands, providing crucial support to family members in need. However, sending remittances can be challenging for migrants who often work multiple jobs to afford it, while living in expensive countries with low wages. The Sustainable Development Goals call on countries to reduce remittance transaction costs. While traditional banks, financial services, and fintech applications are common platforms used for remittances, the cost of sending money remains relatively high. Efforts are being made to make money transfers more efficient and accessible through digital platforms. Migrants like Mina Hamid, Manasse Massuama, and Maria del Socorro Tejeda continue to send money to support their families, despite the challenges they face.

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