Remittance Income falls with a decline in number of workers going abroad
November 24, 2019 | Investopaper
In the first 3 months of the current fiscal year, the remittance income has declined by 4.9 percent. As per the ‘Current Macroeconomic and Financial Situation of Nepal’ report published by Nepal Rastra Bank, the remittance stood at Rs. 230.24 billion in the three months period. In the corresponding period of the previous year, the remittance inflow had increased by 37.30 percent.
The fall in remittance income is due to the decline in the number of Nepalese workers in foreign employment. In the review period, the number of workers going abroad for employment has decreased by 3.7 percent. In the same period of the previous year, the Nepalese workers migrating for foreign employment had decreased by 34.80 percent.
Similarly, the net transfer receipts have reduced to Rs. 260.77 billion in the 3 months, a fall of 3.70 percent. It has increased by 33.40 percent in the same period of the last fiscal year.
The economy of Nepal heavily depends on the remittance inflow. Hence, the falling indicators might be worrisome if other sectors of the economy don’t generate enough income to compensate for the decline in remittance income.
