Analyzing the Impact of COVID-19 on Remittances: A Case Study of Ghana

This paper explores the impact of COVID-19 on remittances, investments, and household consumption in Ghana. The results indicate that workers’ remittances decrease poverty and increase household consumption in areas deemed appropriate for growth in families, especially healthcare, education, and entrepreneurship. Moreover, the findings reveal that the workers’ remittances satisfy the anticipation and the belief of decreasing poverty, increasing healthcare services, and magnifying incomes at household levels in times of economic disturbances and setbacks. Nevertheless, because of the economic calamity and setback created by the COVID-19 pandemic and shutdown, global remittances are expected to decrease dramatically by around 20 percent in 2020. Remittance flows to the nations are projected to decrease by 23.1 percent to hit $37 billion in 2020 due to the COVID-19 calamity, although a rebound of 4 percent is expected in 2021. Therefore, the government must grant blossoming and maturing insurance plans and strategies, that can permit and inspire the remittance-receiving households and folks to put their assets to superb and environmentally friendly uses, so that in times of economic crisis where the migrants are unable to remit money to them, their families will not suffer and be disadvantaged. Quick initiatives that make it less complicated to remit and receive remittances must be supplied to furnish the much-needed assistance and support to the migrants and their respective families. Furthermore, the authorities must generate and establish economic establishments with cheap transfer assistance and favor for convenient flow of remittance that would not only facilitate transparency but also the vanishing of treasured income when remitting via unlawful means. Also, the government must join forces with other investment institutions such as banks to implement systematic initiatives and strategies to allow migrants to become investors.