According to the latest forecast by the World Bank this would be the largest single-year decline in remittances in the past century. The last global financial crisis saw remittances drop by 5% in 2009.
The impact is felt across all regions. Central Asia countries are predicted to see the largest drop due to the combined effect of Covid-19 and the crashing oil price. Remittances made up 29% of Kyrgyzstan’s GDP in 2019, about three quarters of which came from Russia. The depreciation of the Russian ruble to US dollars could lead to a drop in remittances from Russia. Countries in the east Asia and Pacific region are the least impacted. A number of countries whose economies are largely dependent on remittances have already enacted fiscal policies to cope with the impact.