The effects of the global Covid-19 economic slowdown are likely to be felt in the Pacific in the coming months, according Kishti Sen, ANZ Pacific Economist, despite a bounceback in remittances seen after an initial drop in April.
"I put a lot of that down to the income support payments that were part of the overall fiscal stimulus package in the source markets," said Sen.
"Going forward, as some of those income support payments are wound back, you will probably see a pullback in remittance flows to the Pacific over the next four months of this year."
But Sen doesn't believe the drop in remittance flows, and the pressure it will put on household budgets, will result in collapse.
"Melanesian and Polynesian culture is such that you look after your family and friends and people will still be sending money," he said.
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