Remittances to Laos to drop by 50% amid pandemic


Remittances of overseas Lao workers to their home country are projected to decline by about 50 per cent in 2020 as a result of the economic crisis triggered by the Covid-19 pandemic, Vientiane Times reported.

The article quoted Leeber Leebouapao, chairman of the national assembly’s planning, finance and audit committee, that more than 100,000 Lao migrant workers – most of which were working in Thailand, South Korea and Japan – have been forced to return home and lost their jobs as countries went into lockdown during the virus crisis.

He added that this was another blow for the Lao economy as those remittances were an important source of income for parts of the population and also would support poverty reduction efforts. Recipient families generally use remittances to build houses, send children to schools and pay for healthcare.

The World Bank in its latest Lao Economic Monitor said that since the outbreak, remittances dropped by an estimated $125 million to half their value. This translates into 0.7 per cent of the country’s GDP.

Poverty rate expected to double

According to the report unveiled in June this year, the Covid-19 pandemic keeps adversely impacting the flow of remittances and could push as many as 214,000 people into poverty in Laos which has a population of around seven million.

Around nine per cent of households in Laos receive remittances from abroad, and they constitute 60 per cent of their household income, according to the World Bank report. Due to the significant reduction of theses incomes, the poverty rate is expected to rise by 1.4 percentage points to 3.1 per cent in 2020.

“The impact of the pandemic on poverty is expected to linger, with poverty projected to return to its pre-crisis level in 2021 under an upside scenario, or later than 2022 under a downside scenario,” said the report.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Remittances of overseas Lao workers to their home country are projected to decline by about 50 per cent in 2020 as a result of the economic crisis triggered by the Covid-19 pandemic, Vientiane Times reported. The article quoted Leeber Leebouapao, chairman of the national assembly’s planning, finance and audit committee, that more than 100,000 Lao migrant workers – most of which were working in Thailand, South Korea and Japan – have been forced to return home and lost their jobs as countries went into lockdown during the virus crisis. He added that this was another blow for the Lao economy...


Remittances of overseas Lao workers to their home country are projected to decline by about 50 per cent in 2020 as a result of the economic crisis triggered by the Covid-19 pandemic, Vientiane Times reported.

The article quoted Leeber Leebouapao, chairman of the national assembly’s planning, finance and audit committee, that more than 100,000 Lao migrant workers – most of which were working in Thailand, South Korea and Japan – have been forced to return home and lost their jobs as countries went into lockdown during the virus crisis.

He added that this was another blow for the Lao economy as those remittances were an important source of income for parts of the population and also would support poverty reduction efforts. Recipient families generally use remittances to build houses, send children to schools and pay for healthcare.

The World Bank in its latest Lao Economic Monitor said that since the outbreak, remittances dropped by an estimated $125 million to half their value. This translates into 0.7 per cent of the country’s GDP.

Poverty rate expected to double

According to the report unveiled in June this year, the Covid-19 pandemic keeps adversely impacting the flow of remittances and could push as many as 214,000 people into poverty in Laos which has a population of around seven million.

Around nine per cent of households in Laos receive remittances from abroad, and they constitute 60 per cent of their household income, according to the World Bank report. Due to the significant reduction of theses incomes, the poverty rate is expected to rise by 1.4 percentage points to 3.1 per cent in 2020.

“The impact of the pandemic on poverty is expected to linger, with poverty projected to return to its pre-crisis level in 2021 under an upside scenario, or later than 2022 under a downside scenario,” said the report.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply