Govt sees minimal OFW remittance impact from COVID-19

The Philippine government anticipates a minimal effect from the COVID-19 outbreak on OFW cash remittances in 2020, adjusting the growth target from 3% to 2.2%.

Despite the adjustment, total cash remittances are still projected to reach a record high of US$34.2 billion, a slight decrease from the initial projection of US$34.5 billion.

Cabinet Secretary Karlo Nograles stated that the impact of the virus on remittances is expected to be minimal, with contributions from countries like the US potentially offsetting a slowdown from China, Hong Kong, and Macau.

The government has allowed some 25,000 Filipinos to return to their jobs or homes in Hong Kong and Macau after being stranded due to a partial travel ban.

The Department of Labor and Employment noted that China, Macau, and Hong Kong represent small percentages of total OFW remittances.

Historically, remittances from OFWs have shown resilience even during global economic downturns.

Nograles also mentioned that the agricultural sector, particularly banana exports to China, is expected to experience only a minimal impact from the coronavirus outbreak.

The government remains optimistic about achieving the country's 2020 economic growth target of 6.5%, citing the economy's resilience driven by strong domestic demand and production.