ADB sees pandemic slashing 2020 global remittances by over $100 billion
According to a recent report by the Asian Development Bank, in 2019, remittances can fall deeply by 108.6 billion USD as millions of people lose their jobs, many employers are forced to cut payrolls during the Covid-19 pandemic outbreaks, devastating the entire world economy.
A lender in Manila said remittances sent to Asia, which provides a quarter of migrant workers worldwide, are on the decline to $54.3 billion, or 20% of remittances. period last year.
In 2019 we are all delighted when remittances to Asia and the Pacific rise and reach 315 billion USD. This has had a positive impact on the consumer economy in a number of developing countries in the region, including the Philippines.
"The Covid-19 pandemic will continue to affect and hurt the economy and reduce remittances in Asia and the Pacific", According to the ADB report.
Many countries that are struggling to face the dreadful effects are those with a high proportion of remittances per gross domestic product and remittances per capita, such as Tonga, Samoa, and other countries. The other Pacific Ocean, it said.
The report further pointed out the problem: “Countries that send large numbers of seasonal or long-term migrants to Russia and Europe such as Georgia, Tajikistan and Kyrgyzstan, Nepal and even the Philippines are also suffering from a lot of pictures. enjoy heavily. "
"Assuming the worst-case scenario occurs, it will take a year to control the domestic outbreak and restore market economic activity." "But it's also not certain that time will be enough to completely restore everything, even if the social gap is lifted."
Developing Asia, a group of 45 countries in the Asia-Pacific region, is forecast to see its weakest growth in nearly six decades this year, the lender said in its Outlook report. Asian Development was announced in June.