COVID-19 Effect: Remittances To India Likely To Decline In 2020: World Bank  

World Bank - Sakshi Post

WASHINTON: Remittances to India are likely to drop by 23 per cent from USD 83 billion last year to USD 64 billion this year due to the coronavirus pandemic, which has resulted in a global recession, the World Bank has said.

Globally remittances are projected to decline sharply by about 20 per cent this year due to the economic crisis induced by the pandemic and shutdowns, according to a World Bank report on the impact of the COVID-19 on migration and remittances released on Wednesday.

The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country, it said.

“In India, remittances are projected to fall by about 23 per cent 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 report said.

World Bank Group President David Malpass said remittances are a “vital source of income” for developing countries.

“The ongoing economic recession 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 recover for advanced economies,” he said. Malpass noted that remittances help families afford food, healthcare and basic needs.

“As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities’ access to these most basic needs,” he said.

Remittance flows are expected to fall across all World Bank Group regions, most notably in Europe and Central Asia (27.5 per cent), followed by Sub-Saharan Africa (23.1 per cent), South Asia (22.1 per cent), the Middle East and North Africa (19.6 per cent), Latin America and the Caribbean (19.3 per cent), and East Asia and the Pacific (13 per cent).

The deadly coronavirus has so far infected over 2,638,020 people and claimed more than 184,230 lives across the globe. (With inputs from PTI)

Also Read: Coronavirus Is Here To Stay, For A Long Time: WHO Chief

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