BSP sees 5% remittance drop hurting GDP

The Bangko Sentral ng Pilipinas (BSP) projects that a 5% contraction in remittances this year will reduce the Philippines' GDP growth by 0.4%.

BSP Governor Benjamin Diokno attributed this expected decline in remittances to an anticipated increase in joblessness among overseas Filipinos.

The central bank previously forecast a 3% growth in remittances before the pandemic, adjusted to a 2% decline in March, and now to a 5% contraction.

Data shows personal remittances fell to a four-month low of $2.652 billion in March, with cash remittances at $2.397 billion.

This 5% contraction estimate considered the significant repatriation of Filipino workers and economic disruptions in host countries, particularly in tourism, oil production, and transportation sectors.

Diokno acknowledged the uncertainty in projections and stated that the BSP is continuously monitoring developments affecting overseas Filipinos.