Despite the pandemic inducing a global economic shutdown the remittance flow remain unaffected
The World Bank projected Bangladesh’s inward remittances to grow about 8% to reach about $20 billion in 2020.
The global lender made the projection in its latest report titled “Covid-19 Crisis through a Migration Lens” released on Friday.
“Three large recipients of remittances — Mexico ($39 billion in 2019), Pakistan ($22 billion), and Bangladesh ($18 billion) — stand out as exceptions to the general pattern. These countries escaped a decline in remittance inflows in the second quarter and seem to register increases in the third one,” read the report.
In Bangladesh, remittances are projected to grow at a rate of 8% to around $20 billion, the report added.
The country received remittance worth $18.21 billion in the fiscal year 2019-20.
The report also said, in both Pakistan and Bangladesh, the negative impact of the Covid-19 induced global economic slowdown has been somewhat countered by the diversion of remittances from informal to formal channels due to difficulty in carrying money in person under travel restrictions.
The government’s incentives to transfer remittances is also helpful in this regard.