WB predicts 23% dip in remittances to India
The World Bank has predicted that remittances to India are likely to drop by 23% from US$ 83 billion last year to US$ 64 billion this year due to the coronavirus pandemic. This is in stark contrast to the previous year when the country recorded a growth of 5.5% and receipts of US$ 83 billion.
The economic distress induced by the pandemic and shutdowns, will lead to a 20% dip in global remittances this year, according to its report on the impact of the COVID-19 on migration and remittances. The projected decline for other regions respectively is: Europe and Central Asia (27.5%), followed by Sub-Saharan Africa (23.1%), South Asia (22.1%), the Middle East and North Africa (19.6%), Latin America and the Caribbean (19.3%), and East Asia and the Pacific (13%).
This plunge, the sharpest decline in recent history, has been attributed to the 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.
“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,” World Bank Group President David Malpass commented.