5.3% Growth in Remittances Reported in February

Overseas Filipino Workers (OFWs) sent more money home in February after two consecutive months of annual decline said the Bangko Sentral ng Pilipinas (BSP) on Thursday.

According to BSP reports, personal remittances reached $2.76 billion in February. Compared to the $2.62 billion during the same month in 2020, this accounted for a 5.3% increase in remittances. However, these numbers are still lower than the $2.89 billion that was sent back to the Philippines in January.

“The increase in personal remittances was attributed to the 7.8 percent growth in remittances from land-based workers with work contracts of one year or more,” said the BSP. In February 2020, land-based workers transferred $1.997 billion back to their loved ones. This year, the figures went up to $2.15 billion.

Remittances of mariners and short-term OFWs, on the other hand, didn’t fare as well after it dropped from $566 million to $540 million, equating to a 4.6% year-on-year-fall.

The total remittances in the first two months of 2021 amounted to $5.65 billion. This presented a 1.6% growth compared to the same period in 2020, the BSP noted. The United States remains the primary source for most remittances for the two-month period.

The quicker climb for remittances during February “may reflect faster economic recovery/rebound in some major host countries for OFWs around the world that enabled more OFWs to work again,” according to Michael Ricafort, chief economist for RCBC.

This fact remains true “especially in countries with increased COVID-19 vaccine rollouts that helped reduce new COVID-19 cases and led to stronger economic recovery that entailed the creation of new jobs, including for OFWs,” Ricafort added.

Ricafort further explained that other factors could significantly impede remittances, particularly as the more contagious variants of the coronavirus spread in major OFW host countries coupled with possible delays in the vaccine rollout efforts of these states.

Source: CNN PH