Logo of Phnom Penh Post newspaper Phnom Penh Post - ADB: Covid to cut $100B from global remittances

ADB: Covid to cut $100B from global remittances

ADB: Covid to cut $100B from global remittances

The global economy could lose more than $100 billion in remittances, warns a report by the Manila-based Japanese-led multilateral lender Asian Development Bank.

It adds that governments need to act fast to protect the most vulnerable in society from this loss of vital income.

Migrant workers are among the groups hardest hit by the Covid-19 pandemic, with many facing scant job security and limited access to social assistance, the report said.

Large-scale unemployment and wage reduction among migrant workers also threaten the wellbeing of many households in Asia and the Pacific who depend on remittances to meet their daily needs, it added.

“Based on our worst-case scenario, where the Covid-19 economic impact persists throughout the year and dissipates halfway in the last three months of the outbreak, global remittances will fall by $108.6 billion in 2020, [an 18.3-per-cent drop on expected remittances],” it said.

It added that remittances to Asia and the Pacific would fall by $54.3 billion, equivalent to 19.8 per cent of remittances in 2018.

By subregion, remittances in South Asia are expected to fall furthest, by $28.6 billion (24.7 per cent of 2018 receipts), followed by remittances to Central Asia ($3.4 billion, 23.8 per cent), Southeast Asia ($11.7 billion, 18.6 per cent), and East Asia ex-People’s Republic of China and Japan (1.7 billion, 16.2 per cent).

Remittances to the Pacific will also fall ($267 million, 13.2 per cent).

The majority of the decline in remittance flows to the region is explained by a $22.5 billion fall in remittances from the Middle East, which accounts for 41.4 per cent of the total remittance loss in Asia.

This is followed by a $20.5 billion slump in remittances from the US, (37.9 per cent of total). The fall in remittances from the EU and the UK accounts for 6.3 per cent of the total, or $3.4 billion.

The decline from Russia amounts to $2.1 billion, of which $2 billion reflects the decline in remittances going to Central Asia.

By percentage, the Middle East and Russia experienced the sharpest decline – over a third – primarily reflecting the effects of low demand and oil prices on remittances.

THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one