"The combination of prolonged high energy prices and a drop in remittances could pose a double threat for these developing economies, which rely heavily on foreign worker contributions."
"India is the world's largest recipient of remittances, with record high inflows amounting to $135 billion in 2025, significantly aiding its merchandise trade deficit."
"Migrant workers from India, Bangladesh, and Pakistan play a crucial role in the Gulf economies, with millions sending billions in remittances that support their home countries."
"The war has heightened risks for civilians across the GCC, including migrant workers, with casualties reported among the population due to ongoing conflicts."
The Iran war poses a significant threat to the economies of South Asian countries reliant on remittances from workers in the Gulf. Millions of workers from India, Pakistan, and Bangladesh contribute to the economic boom in the region, sending home substantial remittances that support families and bolster foreign currency reserves. With ongoing attacks on energy infrastructure and potential disruptions in oil transit, high energy prices combined with reduced remittances could severely impact these developing economies, which are already facing trade deficits and economic challenges.
Read at www.dw.com
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