Migrants Forced to Lessen Remittances Due to Inflation

A leading digital remittances company, Worldremit Group Ltd. has released the results of their second Cost of Living Index in which they studied how the compounding inflation has impacted the lives of money senders around the globe.

The survey discovered that about 82% of the remittance senders agreed that the cost of living sent to their recipients had increased since the beginning of the year.

Results show that 45% or almost half now only send over money to immediate family as opposed to distant relatives and friends. One out of nine people in the world relies on cash sent by relatives and friends that have gone abroad to work. Many factors add to the increasing financial pressure.

Data shows that about 72% of the US respondents, 41% of the Australian respondents, and 44% of the UK respondents have taken side hustles or additional jobs, with 27% of the survey respondents on average across three markets stating they choose to do to cover the increase in the cost of living.

With the respondents indicating a side hustle, about 89% stated that they will keep their additional jobs over the next year.

With inflation, households around the globe are re-evaluating spending habits with more than 26% of the respondents indicating that they are cutting discretionary spending on entertainment like theaters, cinemas, or eating out.

“The inventive solutions, such as side hustles, that we are seeing as a result of the current economic landscape point to the resilience of migrants and their commitment to financially supporting loved ones overseas,” mentioned Head of the Americas, WorldRemit, Jorge Godinez Reyes.

“These findings demonstrate the grit of economic migrants in adapting to wider financial stresses and the rising cost of living while still meeting the needs of their families at home and abroad.”

Source: Business Mirror