Global remittances – the financial lifeline millions rely on – are set to plummet by 14% in 2023 due to pandemic aftershocks, according to World Bank data. Nowhere is this drop more seismic than in Venezuela, where these funds trail only oil exports as an economic pillar.
Imagine sending half your paycheck to family abroad, only for crises like COVID-19 to slash income opportunities worldwide. This reality now haunts over 3 million Venezuelans dependent on cross-border cash flows. Many migrant workers in sectors like hospitality (a pandemic casualty) are struggling to maintain support.
Why it matters: Venezuela already battles hyperinflation and fuel shortages. Remittances accounted for nearly $4 billion annually pre-pandemic – critical for buying medicine, food, and essentials. The projected 14% global decline could leave families rationing hope alongside resources.
Zoom out: While other nations deploy stimulus packages, Venezuela’s political turmoil limits recovery options. Analysts suggest this could accelerate migration trends, creating a domino effect across Latin America. But grassroots groups are stepping up, launching digital platforms to streamline support between diaspora communities and their homeland.
Reference(s):
cgtn.com