Page 31 - GEORptJun20

Elsewhere in the wider region, remittances are important contributors to the economy in Southeast European countries Moldova (16.2%), Kosovo (15.6%), Bosnia & Herzegovina (10.2%) and Albania (9.5%), as well as the South Caucasus — Georgia (14.2%) and Armenia (11.4%).
In absolute terms, Ukraine was the top recipient of remittances in the region, receiving almost $16bn in 2019.
This was a record high for the country, and a result of the rebound in economic activity in Russia. Russia is also a highly important source country for remittances to Central Asia, the South Caucasus and Moldova.
However, in 2020 remittances from Russia have already dropped sharply as a consequence of both the pandemic and the slump in oil prices.
For Central and Southeast European countries, the major source of remittance payments is the western half of the EU, and with some of the world’s largest coronavirus outbreaks in the region’s largest economies, France, Germany, Italy and Spain, as well as in the UK, a similar fall is expected in remittances to the region.
Warning of the human toll from the fall in remittances this year, World Bank Group President David Malpass said in a statement that they are a vital source of income for developing countries that help families afford food, healthcare and basic needs. “The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” Malpass said.
In 2021, remittances to the region are anticipated to recover by 5.0%, which is close to the global average growth of 5.6% forecast by the development bank. However, it warns that medium-term downside risks dominate the remittance outlook for 2021, and the recovery from the crisis is “likely to be prolonged and arduous”.
31​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com