Overseas Filipino Workers or OFWs send money to Philippines, as they are widely called, are significant contributors to the Philippines’ economic growth. The money they send home in the form of remittances allows their families to pay for necessities, including food, bills, and school fees, as well as the occasional treat. Household demand, as opposed to exports, is an important component of the gross domestic product (GDP), the most commonly used indicator of national economic development.
What Was The Trend Of International Money Transfers To The Philippines Before Lockdown?
Data will help bring the value of remittances to the Philippines into perspective. According to the latest data from the Philippine Statistics Authority (PSA), 2.3 million Filipinos live and work in other countries. The Bangko Sentral ng Pilipinas (BSP) reports that money transfer to Philippines from abroad was more than £24.10 billion in 2019, accounting for nearly 10% of the country’s GDP. The Philippines is now ranked fourth among global remittance recipients, behind India (first), China (second), and Mexico (third) (third).
What Was The Trend Of International Money Transfers To The Philippines in 2020?
In December, remittances totalled £2.09 billion, a 0.4 percent decrease from the previous year and a contrast to November’s 0.3 percent increase. Remittances totalled £21.51 billion in the 12 months leading up to December, unchanged from November. Overall, remittances fell 0.8 percent in 2020, marking the first drop since 2001. Nonetheless, the reading for 2020 was higher than the Central Bank’s estimate of a 2.0 percent drop.
Online money transfers to Philippines are an important source of revenue for many Filipino families and a primary driver of private consumption, accounting for roughly 9% of GDP in 2020.
What Was The Trend Of International Money Transfers To The Philippines in 2021?
In the first month of 2021, remittances totalled £1.86 billion, down 1.7 percent year over year and faster than December’s 0.4 percent fall. Remittances totalled £21.51 billion in the month of January, remaining steady for the fourth month in a row. The 12-month rolling total for January showed a 1.5 percent decrease from a year ago (December 2020: -0.8 percent year-on-year).
In 2021, private consumption is expected to grow by 6.1 percent, which is unchanged from last month’s projection. Expatriates send money to Philippines online for household spending is expected to increase by 6.3 percent by 2022.