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The cumulative shrinkage of remittances slowed further in October as Filipino migrant workers were able to increase the money they sent home during the month despite continuing economic shocks and downsizing due to the global health crisis, reported Bangko Sentral ng Pilipinas (BSP) on Wednesday. .
Cash remittances sent home by Filipino migrant workers grew 2.9 percent in October to $ 2.75 billion. The increase was attributed to the growth in remittances from both land and sea workers.
Filipino migrant workers on land increased their remittances by 3.3 percent to $ 2.19 billion in October. Filipino workers living at sea, who were severely affected at the height of the movement and travel restriction at the beginning of the pandemic, were also able to increase their remittances by 1.2 percent to $ 561.2 million. .
October’s remittance level is a boost from remittance inflows of $ 2.6 billion the previous month. It is also higher than remittance inflows of $ 2.67 billion in the same month last year.
This narrowed the gap between total remittances received by the Philippines in the same 10-month period last year and cumulative remittances this year.
The Philippines received a total of $ 24.6 billion in remittances in the first 10 months of the year, 0.9 percent less than the $ 24.9 billion recorded in the same 10-month period last year.
By country of origin, cash remittances from Saudi Arabia, Japan, the United Kingdom (United Kingdom), the United Arab Emirates (UAE), Germany and Kuwait decreased; while those of the United States (USA), Singapore, Qatar, Oman, Hong Kong and Taiwan increased.
The United States recorded the largest share of total remittances at 40.2 percent, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Hong Kong, Qatar, and Taiwan.
Combined remittances from these countries accounted for 78.7 percent of total cash remittances.
Proven resilience
The ability of remittances to grow further despite massive global economic shocks and cuts is proof of their resilience, economists said.
Overseas Filipinos [OF] They continue to prove the skeptics wrong, finding a way to send home their hard-earned remittances despite the challenges posed by the pandemic, ”said ING Bank economist Nicholas Mapa.
“The fact that remittances continue to rise even after 300,000 OF were repatriated and the world economy faces a recession is truly impressive and a testament to the courage and heart of our heroes today,” he added.
Mapa said this is good news for the economy, as remittances largely finance the country’s domestic consumption. However, this may also mean that Filipino migrant workers were asked to endure the brunt of the local recession.
He added: “By financing the Philippine domestic consumption needs of their families, the strong appreciation of the peso may have forced OFs to move heaven and earth to send even more remittances in dollars. Therefore, once again, OFs must make up for deficiencies at home, if only to ensure a happy vacation for their families at home. “
Towards the end of the year, Mapa foresees a strong ending in terms of remittance flows to close the year to finance their families’ vacation expenses. However, he cautioned that renewed closures in host countries, particularly those in the US and many parts of Europe, may silence this increase.
