MANILA – Remittances to the Asia Pacific region from citizens working abroad could grow 6.7% this year and 5.9% next year, after a 2% slump in 2020, underpinned by further easing of COVID-19 curbs in advanced economies, the Asian Development Bank said.
In absolute terms, remittances to the region were expected to rise by $21.2 billion this year and $19.8 billion next year, the Manila-based lender said in a report published on Tuesday.
Inflows to the region last year reached $314 billion, the ADB said.
On average, the Asia Pacific region was estimated to account for about 63.4% of the total increase in global remittances in 2021 and 2022, the ADB said.
It said worldwide remittance receipts could increase by 4.8%, or $34 billion, in 2021 and by 4.2%, or $30.7 billion, in 2022.
About 60% of the remittance inflows to the Asia-Pacific region would likely come from the United Kingdom, United States and the European Union, while nearly 30% would be from the Middle East, it said.
The ADB has trimmed its growth forecasts for developing Asia – a group of 45 countries in the Asia-Pacific region – for this year and next to reflect risks and uncertainty brought on by the Omicron coronavirus variant.
(Reporting by Enrico Dela Cruz; Editing by Ed Davies)