Remittances reach 9.2 percent of PH's GDP
Personal remittances reach US$33.2 billion; 9.2 percent of PH GDP
MANILA – The Bangko Sentral ng Pilipinas today said personal remittances from overseas Filipinos (OFs) fell by 0.3 percent year-on-year to US$3.205 billion in December 2020 from US$3.216 billion in December 2019.
In a statement released today, the slight decrease in remittances was attributed to the 0.7 percent decrease in remittances from land-based workers with work contracts of one year or more to US$2.494 billion from US$2.512 billion in December 2019.
Remittances from sea-based workers and land-based workers with work contracts of less than one year slightly increased by 0.8 percent to US$647 million in December 2020 from US$642 million in December 2019.
The full-year 2929 remittances from OFs reached US$33.194 billion which was found lower by 0.8 percent than the US$33.467 billion reached in 2019. Personal remittances remained a major source of the country’s foreign exchange inflows, with the 2020 level representing 9.2 percent of the gross domestic product (GDP) and 8.5 percent of the gross national income (GNI).
The Overseas Filipinos’ remittances made through the banks fell slightly by 0.4 percent to US$2.89 billion in December 2020 from US$2.902 billion in December 2019.
Cash remittances from land-based workers fell by 0.7 percent to US$2.297 billion while that of sea-based workers increased by 0.8 percent to US$593.2 million.
The full-year Overseas Filipinos’ cash remittances reached US$29.903 billion, lower than 0.8 percent than the US$30.133 billion reached in 2019. According to the BSP statement, the actual annual decline in 2020 was lower than the earlier forecast contraction of 2 percent for the year.
Cash remittances from Saudi Arabia, Japan, the United Kingdom (UK), the United Arab Emirates (UAE), Germany and Kuwait declines while those from the United States (US), Singapore, Canada, Hong Kong, Qatar, South Korea, and Taiwan increased.
Remittances from the United States was highest at 39.9 percent followed by Singapore, Saudi Arabia. Japan, the UK, the UAE, Canada, Hong Kong, Qatar and South Korea. The combined remittances from these countries accounted for 78.6 of the total cash remittances. (Melo M. Acuna)