Indian economy is already at risk due to the coronavirus impact on its business activity.
Amid this concerning situation, here is another update from the World Bank to India.
In its latest release, the World Bank said India will also witness a 23 percent fall in its remittances this year due to the corona effect.
As a result, the country’s remittance revenues are likely to drop from USD 83 billion in 2019 to USD 64 billion in 2020.
“In India, remittances are projected to fall by about 23 percent in 2020, to USD 64 billion – a striking contrast with the growth of 5.5 percent and receipts of USD 83 billion seen in 2019,” the World Bank said in its report on Covid-19 impact on migration and remittances.
Remittances at the global level are also likely to see a 20 percent drop due to the economic crisis caused by coronavirus pandemic and eventual business shutdown.
The World Bank said this is the sharpest decline in the recent history and is majorly linked to the migrants’ concerns with regard to wages and employment at the host countries.
“Remittances are a vital source of income for developed countries. The ongoing economic recession for caused by Covid-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” says the World Bank Group President David Malpass.
He further added that the Group is working towards “keeping remittance channels open and safeguard the poorest communities’ access to these most basic needs,” he adds.
The World Bank states the remittances across its group nations will fall drastically, most significantly in Europe and Central Asia (27.5 percent).
Other regions include:
- Sub-Saharan Africa – 23.1 percent
- South Asia – 22.1 percent
- Middle East and North Africa – 19.6 percent
- Latin America and Caribbean – 19.3 percent
- East Asia and the Pacific – 13.1 percent
- Pakistan is likely to witness a 23 percent decline of around USD 17 billion, compared to its previous year’s performance at USD 22.5 billion.
- Bangladesh is projected to see a 22 percent fall to receive USD 14 billion in remittances this year.
- Nepal and Sri Lanka are expected to witness 14 percent and 19 percent decline, respectively.
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