Corona remittance flow: Bangladesh in the top three
Dhaka, February 20: In the outgoing year, most countries failed to maintain the same level of remittances as in the previous year due to the Corona pandemic. The exception is Bangladesh. Of the top 10 developing countries in terms of expatriate income, remittances have declined in seven of the Corona epidemics. However, remittances have increased in three countries. Bangladesh is one of those three countries. Among the many bad news during the pandemic, of course, this is good news.
Developing countries like India and China have also stumbled upon remittance inflows due to the slowdown in the global economy due to the Corona in the outgoing year. And last year, the expatriate income of Bangladesh has increased by eight percent. In 2019, remittances of USD 1,840 crore came to Bangladesh. In 2020, it increased to USD 1,988 crore.
The other two countries where remittances have increased are Pakistan and Mexico. In the outgoing year, their expatriate income has increased by four and nine percent respectively. This is according to a report in The Economist Intelligence Unit. However, they think that the increase in expatriate income in Bangladesh and Pakistan is temporary.
The reason is that many of the expatriate workers in these two countries have lost their jobs and sent their savings to the country. This trend was more prevalent among workers in the Gulf countries. This is because the falling oil prices due to the corona and the collapse of the tourism business have put the economies of the countries in the region in crisis.
Another reason for the increase in remittances in Bangladesh, the report said, was the increase in remittances due to the travel ban in Corona. Incentives have also been raised for sending money legally, which has encouraged migrant workers to send money home legally.
The Economist Intelligence Unit thinks this increase in expatriate income is temporary. Expatriate income is at risk of falling again in 2021. According to them, the long-term effects of corona could reduce expatriate income by seven percent this year.
Meanwhile, the remaining seven developing countries whose remittances declined in the outgoing year were India, China, the Philippines, Egypt, Nigeria, Vietnam and Ukraine.