Page 66 - BNE_magazine_06_2020 Growers

66 I Eurasia bne June 2020
For Central and Southeast European countries, the major source of remit- tance 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.
Ukraine is largely dependent on remittances from Poland (around two- thirds of the total), the Czech Republic, Russia, the US and the UK, all of which have thousands of cases and lockdowns in place.
“Amid the COVID-19 pandemic, many Ukrainians working abroad, estimated at some 3mn-4mn, were having a difficult time finding employment as tightened border controls blocked many temporary and seasonal workers from moving throughout Europe, including within neighbouring countries. Some of them returned to Ukraine, though many were stranded abroad. It was reported that many short-term Ukrainian
workers in Italy, the third-most popular destination (with 11% of Ukrainian migrant workers) after Poland (40%) and Russia (25%), were trapped behind a nationwide lockdown, unable to return home despite having expired visas,” says the report.
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”.
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Venezuelan navy ships are seen during a military exercise near Punto Fijo, Venezuela, July 24, 2019. Photo by Miraflores Palace/via REUTERS.