The World Bank reported that, as a result of the economic downturn caused by the COVID pandemic, 2020 would see the worst drop in remittances in Latin America and the Caribbean in history. Remittances represent one-fifth of the GDP of El Salvador and Honduras, one-tenth for Guatemala and Nicaragua and less than 5% for Belize, Mexico, Costa Rica and Panama.
In March 2020, Latin American unemployment was 6% and tripled in the face of the pandemic to 18.9% in April. Women were the most affected. Nevertheless, remittances to Mexico and Central America recovered as of June. Why so soon?
The World Bank's projections are not being met, fortunately for Mexican, Central and South American families. What is seen is that being a migrant and being precarious are synonymous and that in case of any drop in production they are the first group to be unemployed, but in some cases with a faster recovery.