Fiji’s share of remittances has amounted to hundreds of millions of dollars in the past.
However the ongoing economic recession caused by COVID-19 is taking a severe toll on low income economies that depend on remittances.
Studies have shown that remittances help alleviate poverty in lower and middle income countries, improving nutritional outcome, associated with higher spending on education and reduce the labour pressure in disadvantaged households.
But COVID-19 has dictated a drop in remittance flow across the world.
And Fiji like other developing Pacific states will feel the impact.
With the flow brought to a standstill because of COVID19, the outlook for steady remittances remain uncertain.
International remittances will be crucial in transmitting the unfolding economic crisis in richer countries to smaller and developing countries as the world deals with the pandemic.
In the past remittances have been counter-cyclical where workers send more money home in times of crisis and hardship.
This time around however, the pandemic has affected all countries creating additional uncertainties.