Uzbekistan expects drop in incoming remittances
BAKU, Azerbaijan, May 1
By Ilkin Seyfaddini – Trend:
Decrease in economic activity in the main trading partner countries of Uzbekistan will have a negative impact on the volume of currency flows into the country, Trend reports citing the Central Bank of Uzbekistan.
According to the estimates of the Central Bank, the negative impact of external economic conditions on the inflow of remittances to Uzbekistan will fully begin to show in 2Q2020, and their volume will be lower than last year's figures until the end of 2020.
According to preliminary estimates, the volume of cross-border remittances will decrease by 30-35 percent compared to last year.
At the same time, the fall in remittances in the period from April through July 2020 (month to month of the same period last year) could reach 50 percent, with a gradual recovery thereafter.
Remittances in April decreased by 50 percent compared to the corresponding month of 2019. However, an analysis of weekly remittance volumes for April reveals a slight recovery observed since the third week of April.
According to preliminary estimates, the Central Bank of Uzbekistan expects the country's gross domestic product (GDP) growth rate to slow down to 1.5-2.5 percent in 2020, amid the coronavirus pandemic.
Follow author on Twitter: @seyfaddini