InvestorQ : Has the COVID-19 hit remittances from places like the Middle East and what will be the impact on India?
Angel dcosta made post

Has the COVID-19 hit remittances from places like the Middle East and what will be the impact on India?

Answer
user profile image
Anamika Sodhani answered.
2 months ago


It is likely to hit remittances, and hit them badly. In fact, in one of its recent reports the Asian Development Bank or ADB has projected that due to COVID-19, the unprecedented recession could depress global remittances by nearly $109 billion. Clearly, Asia is likely to be the big loser from this trend since many of them rely on remittances from Middle East.

It has been specifically pointed out by the ADB report that migrant workers were the worst hit around the world and this pandemic had created a double whammy of falling income levels and job insecurity. In many cases, these migrant workers had to take wage cuts and even lose jobs as countries moved to give first preference to their local population over the migrant workers for clear political reasons.

Asia alone will account for a fall of $54 billion during the year representing nearly half of the global fall in remittances. These Asian remittances largely come from the Middle East and that is likely to be badly affected due to a combination of weak oil prices and also poor growth. India gets $70 billion of remittances each year and a lot of that money comes into India from countries like Saudi Arabia, UAE and Kuwait, and all these are slowing down.