Do you know how Filipinos send money to Philippines from abroad? Due to the economic catastrophe caused by the COVID-19 outbreak and shutdown, global remittances are expected to drop by roughly 20% in 2020. The predicted drop, which would be the worst in recent history, is primarily due to a decline in migrant workers’ income and employment, who are more sensitive to job loss and salary loss during an economic downturn in their host nation. Remittances to low and middle-income countries (LMICs) are expected to drop 19.7% to $445 billion, robbing many vulnerable households of a critical source of income.
Following two months of annual declines, Filipinos money transfer to Philippines to their families increased in February, according to the Bangko Sentral ng Pilipinas. The BSP announced that personal remittances totalled $2.76 billion in February. This is up 5.3 percent from the $2.62 billion sent to the Philippines in the same month the previous year. Despite the increase, February’s total is lower than the $2.89 billion paid back to the Philippines by overseas Filipinos the month before.
Personal remittances totalled $2.76 billion in February, according to the BSP. This is up 5.3 percent over the previous year’s $2.62 billion sent to the Philippines in the same month. Despite the increase, the amount for February is less than the $2.89 billion remitted back to the Philippines by overseas Filipinos the previous month. Online money transfers to Philippines has also experienced a significant increment due to lockdown.
How Increment In Remittance To Philippines Has Boost Economy?
Expectations for slight positive growth in OF remittances will continue to underpin the Peso in the short term, especially with corporate demand for the dollar being weighed down by the recession. Inbound shipments of capital goods and durables have been less stellar than before the pandemic, assisting the Philippines in posting a current account surplus in 2020. We anticipate that remittance flows will be sufficient to fund the smaller trade deficit in 2021, putting upward pressure on the PHP in the near term.
Some of these policies resulted in an economic and labour market shock, affecting supply and demand. Many industries have temporarily shut down, while others may be forced to close permanently. Consumption and investment both fell sharply. Uncertainty about the future and the virus’s continuous spread is putting pressure on the global economy, with businesses and workers throughout the world needing to adjust to a quickly changing environment and new limits and hurdles to stay in business. In the current situation, OFW sending money to Philippines online only supports the economy because of the pandemic foreign investors are not ready to invest in the business sector.