Nepal: Strategies for Post-COVID-19 Recovery Amidst Falling Remittances

Source: The Himalayan Times

With the COVID-19 pandemic bringing to a halt economic and broader development activity around the world, the World Bank has projected that remittances to low-and middle-income countries (LMICs) will fall sharply in 2020 – by about 20 per cent.

Nepal, where remittance contribution to GDP in 2019 was equivalent to 27.3 percent, according to the World Bank, has lost nearly 50 percent of remittances in the past two months compared to the same period last year, according to a report by Nepal Rastra Bank, the country’s central bank, published in May 2020.