New data show that Central Asian governments have been right to fear Russia’s economic crisis was heading their way: Remittances from migrant laborers are falling sharply, more than in any other region worldwide.
Migrant remittances are the largest single source of foreign currency in Tajikistan and an important factor in declining poverty rates throughout Central Asia in recent years. So the contracting Russian economy and stricken ruble – brought on by a sudden fall in oil prices and Western sanctions – have a direct impact on millions of the region’s laborers and their families back home.
“Overall, reduced remittances are likely to worsen standards of living in remittance-receiving countries, and the increasing number of returned migrants could put upward pressures on unemployment rates,” the World Bank said in a regular briefing on April 13.
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