Remittances to India likely to decline by 23 pc in 2020 due to COVID-19: World Bank

As a result of dely coronavirus pandemic, which has resulted in a global recession, remittances to India are likely to drop by 23 per cent from USD 83 billion last year to USD 64 billion this year, World Bank has said.

"In India, remittances are projected to fall by about 23 per cent in 2020, to USD 64 billion  a striking contrast with growth of 5.5 percent and receipts of USD 83 billion seen in 2019, World Bank said in a report on impact of COVID-19 on migration and remittances released on Wednesday.

Globally remittances are projected to decline sharply by about 20 per cent this year due to ecomic crisis induced by COVID-19 pandemic and shutdown.

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

Remittances are a vital source of income for developing countries. ongoing ecomic recession caused by COVID-19 is taking a severe toll on ability to send money home and makes it all more vital that we shorten time to recovery for vanced ecomies, said World Bank Group President David Malpass.  

Remittances help families afford food, healthcare, and basic needs. As World Bank Group implements fast, bro action to support countries, we are working to keep remittance channels open and safeguard poorest communities' access to se most basic needs, he ded.  

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

In Pakistan, projected decline is also about 23 per cent, totalling about USD 17 billion, compared with a total of USD 22.5 billion last year, when remittances grew by 6.2 per cent.  

In Banglesh, remittances are projected at USD 14 billion this year, a likely fall of about 22 per cent. 

Remittances to Nepal and Sri Lanka are expected to decline by 14 percent and 19 percent, respectively this year.