How Philippines Managed To Sustain Flow Of Remittance To Country During Outbreak Of Pandemic?

Filipinos send money to Philippines amid pandemics. On January 30, 2020, a 38-year-old woman returned from Wuhan with the first case of novel coronavirus (2019-nCoV, now COVID-19) in the Philippines. On February 1, 2020, the Philippines registered the first death outside of China. Following an increase in newly reported cases and local transmission, the Philippines government declared a health emergency on March 9. The step would free up funds for local governments and healthcare officials to deal with any additional cases. On March 12, the COVID-19 Code Warning system was upgraded to Red Sublevel 2.

Since mid-March 2021, a sharply growing wave of new COVID-19 cases has impacted the Philippines’ near-term outlook. In the short term, this is likely to slow the rate of economic recovery, as stringent pandemic control measures have been enforced in Metro Manila and other areas severely impacted by the recent increase in pandemic cases.

What Was The Impact Of Pandemic On the Overall Economy Of The Developing Countries?

The Philippines has experienced good economic growth and is regarded as one of Asia’s fastest-growing economies, with real GDP rising by 6.3 percent on average over the ten years to 2019. Remittance inflow which is money transfers to Philippines from abroad workers, which increase domestic consumption spending, accounted for 9.3 percent of GDP and 7.8 percent of gross national income (GNI) in 2019, according to the BSP. The onset of the COVID-19 pandemic, on the other hand, threw the country’s economy into a tailspin, ending nearly three decades of uninterrupted development. The Philippines’ economy has weathered both the Asian and recent global financial crises.

What Is The Impact Of Prolonged And Strict Lockdown Amid Covid-19?

Following the prolonged implementation of community quarantines in various parts of the world, the GDP growth rate assumption for 2020 has been revised to -8.5 to -9.5 percent. Despite a lower initial projection, the economy remains on track for full recovery thanks to further relaxation of restrictions. The government improves its healthcare system capability and online money transfer to Philippines from abroad by expatriates.

As a result, the government remains optimistic that the economy will rebound strongly in 2021 as it moves closer to complete reopening. GDP growth is expected to pick up in 2021, reaching 6.5 to 7.5 percent, and 8 to 10% in 2022. Filipino diaspora in developed countries is playing a vital because they send money to Philippines online to support families in the remote areas of their home country.