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ADB sees pandemic slashing 2020 global remittances by over $100 bln

Published 08/03/2020, 09:30 AM
© Reuters.

MANILA, Aug 3 (Reuters) - Remittances across the world could
decline by $108.6 billion this year as job losses mount and
employers trim payrolls amid a COVID-19 pandemic that has
devastated economies, according to a report by the Asian
Development Bank.
Money sent to Asia, where about a third of migrant workers
worldwide come from, could fall by $54.3 billion, or about a
fifth of baseline remittances, the Manila-based lender said in
the report released on Monday.
Remittances to Asia and the Pacific, which amounted to $315
billion in 2019, help fuel the consumption-led growth for some
of the region's developing economies, including the Philippines.
"The COVID-19 pandemic is expected to hit remittances hard
in Asia and the Pacific," the ADB report said.
The countries facing "more severe" effects are those where
the share of remittances to the gross domestic product and per
capita remittances are high, such as Tonga, Samoa and other
Pacific nations, it said.
Georgia, Kyrgyzstan and Tajikistan, which send a large
number of seasonal and long-term migrants mainly to Russia and
Europe, will also be hard-hit, along with Nepal and the
Philippines, the report said.
"The worst-case scenario assumes that the domestic outbreak
control and resumption of economic activities take a year's
time," it said. "Uncertainty looms about the timing of full
recovery, even as lockdowns are lifted."
Developing Asia, a group of 45 countries in the Asia-Pacific
region, is forecast to clock up its weakest growth in nearly six
decades this year, the lender said in its Asian Development
Outlook report issued in June.

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