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

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a