Kazi Zahidul Hasan :
A sharp fall in remittance flow as a result of economic slowdown in the Gulf Cooperation Council (GCC) countries could hit Bangladesh economy badly, said economists.
Referring to media reports, they said, remittance flow has already declined by over 11 per cent year-on-year despite a significant rise in the country’s labour migration in 2016 reflecting the decline in income and savings of Bangladeshi migrant workers.
Bangladeshi migrants sent $12.65 billion remittance up to November in 2016 while it was US$ 15.11 billion in 2015, according to the Refugee and Migratory Movements Research Unit (RMMRU).
It said, in 2016, about 7.5 lakh Bangladeshi workers migrated to different countries, which is a 35 per cent rise than the previous year. A total of 5.55 lakh workers migrated abroad in 2015.
“Remittances have been shrinking over the months reflecting the flip side of the sharp fall in global oil prices which invited economic
slowdown in the GCC countries leading to subsequent changes in labour market dynamics there,” Dr AB Mirza Azizul Islam, an economist, told The New Nation on Thursday.
He said the decline in oil prices affected revenue income of the GCC economies from petroleum exports forcing them to cut their overall development spending and salary, bonus and overtime payment of migrant workers.
“This has affected earnings of Bangladesh workers in GCC states causing drop in overall remittance flow,” he said adding,” Remittance has been immensely contributing to national economy. So, its fall could cause a serious economic consequence for the near term.”
Dr AB Mirza Azizul Islam apprehends that Bangladesh can see a further decline in remittance flow if economic uncertainty lingers in GCC states.
Over 10 million Bangladeshis left the country to leave and work abroad since 1976 and the labour migration was highest in GCC states.
Remittance has been catalytic to Bangladesh’s economic and social landscape over the decades. It has been playing a key role in sustaining macroeconomic stability, maintaining the current account balance, building up foreign reserves, managing the country’s balance of payments (BOP), boosting consumer spending, improving living standards of migrant’s families, alleviating poverty and creating jobs for rural population.
Remittances accounted for nearly 8.0 per cent of the country’s Gross Domestic Product (GDP).
“Remittance send by migrant workers pays a crucial role in boosting rural economy and significantly helping reduce in rural poverty. So, a drop in remittance flow is going to hit the economy badly,” Dr Ahsan H Mansur, Executive Director of the Policy Research Institute of Bangladesh (PRI) told The New Nation on Thursday.
“The decline in overall remittance inflow for a longer period could also harm the country’s macroeconomic stability,” he added.
“Remittances obviously provide enormous economic stability for Bangladesh. It is playing a key role in maintaining quality of life in receiving families as well as boosting the consumers’ spending. So, decline in remittance flow is worrying signal for Bangladesh economy,” Dr Zahid Hussain, the lead economist, World Bank’s Bangladesh Country Office, told The New Nation yesterday.
“Most disconcerting feature inward remittance is that it continues to decline by double digit over last 15 months. So, the fall must leave an adverse impact on Bangladesh economy,” he added.
A sharp fall in remittance flow as a result of economic slowdown in the Gulf Cooperation Council (GCC) countries could hit Bangladesh economy badly, said economists.
Referring to media reports, they said, remittance flow has already declined by over 11 per cent year-on-year despite a significant rise in the country’s labour migration in 2016 reflecting the decline in income and savings of Bangladeshi migrant workers.
Bangladeshi migrants sent $12.65 billion remittance up to November in 2016 while it was US$ 15.11 billion in 2015, according to the Refugee and Migratory Movements Research Unit (RMMRU).
It said, in 2016, about 7.5 lakh Bangladeshi workers migrated to different countries, which is a 35 per cent rise than the previous year. A total of 5.55 lakh workers migrated abroad in 2015.
“Remittances have been shrinking over the months reflecting the flip side of the sharp fall in global oil prices which invited economic
slowdown in the GCC countries leading to subsequent changes in labour market dynamics there,” Dr AB Mirza Azizul Islam, an economist, told The New Nation on Thursday.
He said the decline in oil prices affected revenue income of the GCC economies from petroleum exports forcing them to cut their overall development spending and salary, bonus and overtime payment of migrant workers.
“This has affected earnings of Bangladesh workers in GCC states causing drop in overall remittance flow,” he said adding,” Remittance has been immensely contributing to national economy. So, its fall could cause a serious economic consequence for the near term.”
Dr AB Mirza Azizul Islam apprehends that Bangladesh can see a further decline in remittance flow if economic uncertainty lingers in GCC states.
Over 10 million Bangladeshis left the country to leave and work abroad since 1976 and the labour migration was highest in GCC states.
Remittance has been catalytic to Bangladesh’s economic and social landscape over the decades. It has been playing a key role in sustaining macroeconomic stability, maintaining the current account balance, building up foreign reserves, managing the country’s balance of payments (BOP), boosting consumer spending, improving living standards of migrant’s families, alleviating poverty and creating jobs for rural population.
Remittances accounted for nearly 8.0 per cent of the country’s Gross Domestic Product (GDP).
“Remittance send by migrant workers pays a crucial role in boosting rural economy and significantly helping reduce in rural poverty. So, a drop in remittance flow is going to hit the economy badly,” Dr Ahsan H Mansur, Executive Director of the Policy Research Institute of Bangladesh (PRI) told The New Nation on Thursday.
“The decline in overall remittance inflow for a longer period could also harm the country’s macroeconomic stability,” he added.
“Remittances obviously provide enormous economic stability for Bangladesh. It is playing a key role in maintaining quality of life in receiving families as well as boosting the consumers’ spending. So, decline in remittance flow is worrying signal for Bangladesh economy,” Dr Zahid Hussain, the lead economist, World Bank’s Bangladesh Country Office, told The New Nation yesterday.
“Most disconcerting feature inward remittance is that it continues to decline by double digit over last 15 months. So, the fall must leave an adverse impact on Bangladesh economy,” he added.
