Digital methods to send money to Philippines increased during one year of the pandemic. Multiple shocks to the Philippines’ economy – the COVID-19 health crisis, economic activities around the country halted by quarantine steps, crippling typhoons in November, and the global recession – are expected to reduce the economy by 8.1 percent in 2020, reversing recent progress in poverty reduction. However, sustained changes in pandemic management and a potential recovery in the global economy could aid the country’s comeback in 2021 and 2022.
The Philippines’ economy entered a deep recession in 2020 as a result of the COVID-19 pandemic, with GDP falling 9.6% year on year. Since 1946, when the National Accounts data series for the Philippines began, this was the most significant annual decline ever reported. In calendar 2020, household final consumption expenditure dropped 7.9% y/y, while gross capital accumulation fell 34.4 percent y/y. The transport and storage sector saw a 30.9 percent year-on-year drop in production in 2020, while the accommodation and food services sector saw a 45.4 percent drop. Online money transfer to Philippines from expatriates despite job loss ake it possible to sustain many families during strict lockdown time.
What Was The Impact Of COVID-19 On The Labor Market Of The Philippines?
As the coronavirus spread across the world, the Philippines and other countries were forced to put their economies on hold in order to contain the virus. The Philippine economy is still struggling to find ways to resume a year after the requisite hibernation. As the lockdowns relaxed all over the world and expatriate money transfer to Philippines started by all the channels, the Filipino government expected employment to return, but the statistics indicate that the pandemic left a deep scar on the labor market.
According to the Philippine Statistics Authority, the annual unemployment rate in 2020 will be 10.3 percent, or 4.5 million unemployed Filipinos (PSA). Since April 2005, this is the highest annual unemployment rate ever reported. In the meantime, in January 2021, the number of underemployed or working people who expressed a desire for more hours of employment was projected to be 6.6 million, or 16% of the total employed population. This underemployment rate is higher than the 14.4% rate in October 2020 and the 14.8 percent rate in January 2020. Despite the loss of jobs by hundreds of Filipinos working abroad send money to Philippines online from their saving to help out their families in the hard time of the pandemic.