Having a 35 percent increase in migrant outflow in the year 2016 couldn’t control a remittance inflow dropped by about $2 billion in this period from a year earlier.
Tentatively, the migrant outflow is positively correlated to remittance, was two lakhs the last year.
In 2016, 749,249 migrant workers went abroad for jobs in comparison to 555,881 in 2015, according to the Bureau of Manpower, Employment, and Training.
According to central bank statistics, the remittance inflow stood at $13.61 billion in 2016, which is the lowest in five years, which amount is also lower than 2015’s receipts by 11.13 percent.
Remittances have declined very significantly from the US and the UK since July. About 22 percent of total remittances has received from there in fiscal 2015-16, also accounted for nearly 46 percent of the total decline in remittances during the first five months of fiscal 2016-17 from a year earlier.
Saudi Arabia contributed for the highest cumulative share in manpower export figure for 2016, while a substantial number of the workers went to Oman, Qatar, and Malaysia.
According to World Bank, ‘Saudi construction firms have been hit hard due to the lower oil prices, which delayed government spending on major infrastructure projects. If the ongoing fiscal consolidation in the GCC countries is sharper than expected, remittance flows could slow sharply.’
The low oil price on the global market and rising preference for hundi by expatriate Bangladeshis have been blamed for the slide in remittance.
Transferring funds across countries through formal channels have become difficult after the recent terrorist attacks around the world.
Since the UK referendum vote in favour of Brexit, the taka has appreciated against the pound by about 17.6 percent, but it was sharpest during July to mid-October.
And also, the US election result couldn’t have signified well for income and employment prospects of migrants in the US, including Bangladeshi migrants.
The rising uncertainties with respect to US policies against migrants may be discouraging Bangladesh more.