Remittances to India likely to fall by 23%: World Bank
In India, the projected fall will be about 23% in 2020 to USD 64 billion which will be a striking contrast with a growth of 5.5% and receipt of USD 83 billion in 2019.
The World Bank has stated that remittances to India are likely to drop down by 23% due to COVID-19 which has led to the global recession. The drop will be from USD 83 billion last year to USD 64 billion this year.
Globally remittances will see a sharp decline by about 20 percent in 2020 due to the economic crisis started by the pandemic and shutdowns, as per the World Bank’s report on the impact of COVID-19 on migration and remittances which was released on April 22.
World Bank’s President David Malpass stated that remittances are a vital source of income, specifically for the developing countries.
Reason for the projected fall:
The fall which will be the sharpest decline in recent history will be largely due to the fall in employment and wages of the migrant workers. They tend to be more vulnerable to the loss of employment and wages at the time of an economic crisis in the host country.
President David Malpass also added that an ongoing economic recession caused by COVID-19 is impacting the ability to send money home which makes it more important that the time to recovery must be shortened for the advanced economies.
Measures by the World Bank:
As the World Bank Group has been working to implement fast and broad actions to support the countries, the group will also be working to keep remittances channels open and will safeguard the poorest communities access to the basic needs. The remittances help families to afford, healthcare, food, and basic amenities.
Expected fall in remittance flows across World Bank Regions:
• In India, the projected fall will be about 23% in 2020 to USD 64 billion which will be a striking contrast with a growth of 5.5% and receipt of USD 83 billion in 2019.
• In Europe and Central Asia (27.5%)
• Sub-Saharan Africa (23.1%)
• North Africa and Middle East (19.6%)
• South Asia (22.1%)
• East Asia and the Pacific (13%)
• The Caribbean and Latin America (19.3%)
• In Pakistan (23%)
• In Bangladesh (22%)
• In Nepal (14%)
• In Sri Lanka (19%)