Global remittances set to drop by 20-30% in 2020 – The National

Global remittances set to drop by 20-30% in 2020 – The National

Global remittances set to drop by 20-30% in 2020. Economies that account for the bulk of outflows to emerging markets are among the most exposed to the pandemic and oil price shocks, says IIF. Global remittances may fall as much as 30 per cent this year as the coronavirus-induced recession affects countries worldwide, particularly those that account for the bulk of outflows to emerging markets, the Institute of International Finance said.. "As the Covid-19 recession affects more countries simultaneously, especially host countries in the EM [emerging markets] universe, a drop of 20-30 per cent seems possible," the IIF said in its latest research published on Wednesday.. The forecast echoes that of the World Bank, which said in April it expects remittances to low and middle-income countries to fall by about 20 per cent in 2020, with only a moderate recovery in 2021.. By comparison, in 2009 following the global financial crisis remittances fell by about 5 per cent.. While remittances are more stable than portfolio flows and tend to be countercyclical, they will "likely be much lower due to the global and synchronised nature of shocks", the IIF said.. Economies that account for the bulk of global remittances flows are