Impact of Coronavirus Over Global Remittance and Payments Market

Overview

Executive Summary

Economy Performance
Rising cases of coronavirus around the world made economist re-assess the growth forecast for 2020 and its impact over coming years. Global recession is expected to occur if the situation persist in the second quarter of the year and considering rising cases in the US, its economy is estimated to contract 15% in the second quarter of the year as compared to 4% contraction in first quarter. Recovery is expected to start from the third quarter even though overall year growth estimates show a decline compared to 2019 results. 

Asia Holds Majority Share
Remittances are imperative for any country’s economic growth and account for a major source of income mainly to developing countries. Unfortunately, recent pandemic has given hit to migrant workers where a large percentage of expat population has flew back to their origin countries.  Following the recent situation, the FDI flows to developing economies is expected to witness sharp fall of approx. 35% in 2020. Asia account for one of the high recipient of remittances as its population is spread around the world however 2020 is expected to witness double digit fall in remittances. India, China, Philippines are some of the economies receive large amount of remittances from around the World.
Year 2020 started with lockdown of major economies followed by closure of medium to small businesses leading to sharp rise in unemployment hitting the remittances of the migrant workers. In the second half of the year slow economic growth is expected resulting global remittances to decline by 20% in 2020. The projected fall is considered to be the sharpest in the last two decades. COVID-19 pandemic shuffled the Global economy upside down. Emerging economies and low-income countries having major reliance on inward remittances are major bearer of the loss. 

Scope of the Study
The report discusses global remittance market in Pre COVID-19 and Post impact over major geographies. It study remittance flow by regions and top recipient countries. Report gives a fair analysis of the Global remittance market past performance and present estimate along with assessment of future outlook.