Philippines: OFW remittances post strong growth

• Remittances sent home by overseas Filipino workers (OFWs) recorded a strong growth for the second straight month in Mar 21 amid the reopening of borders in host countries and the continued rollout of COVID-19 vaccines, according to the Bangko Sentral ng Pilipinas.
• BSP Governor Benjamin Diokno said personal remittances went up by 5.6% y/y in Mar 21.
• “This is the second consecutive month that remittances were higher than 2020’s levels, reflecting mainly the easing of travel restrictions, reopening of borders to foreign workers, and progress in COVID-19 vaccine rollout in many advanced countries,” Diokno said.
• Diokno said the increase in personal remittances was attributed to the 5% y/y growth in remittances from land-based workers with work contracts of one year or more.
• Likewise, Diokno said remittances from sea-based workers and land-based workers with work contracts of less than one year also increased by 4.5% y/y.
• From Jan-Mar 21, cash remittances increased by 2.6% y/y, coming mostly from the US, Malaysia and Singapore.
• Data released by the central bank showed the US registered the highest share to overall remittances at 40.8% for the first three months, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Qatar, Taiwan, and Malaysia.
• The BSP sees OFW remittances recovering in 2021 with a 4% growth after slumping by 0.8% in 2020.
• The Overseas Workers Welfare Administration (OWWA) has extended assistant to some 592,000 OFWs who have returned home since the repatriation started in May 20.

External Link : https://www.philstar.com/business/2021/05/18/2098900/ofw-remittances-post-strong-growth