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Remittances may fall by 10% this year
The Institute of International Finance (IIF) projects that remittances from overseas Filipino workers (OFWs) could fall by 7% to 10% this year.
This projected decline is attributed to massive layoffs and wage cuts experienced by OFWs globally due to COVID-19 pandemic shutdowns.
The IIF noted that while monthly remittance data did not show a significant reduction until February, a sharp decline is expected starting March as lockdowns were implemented.
The IIF previously projected a 20-30% drop for developing countries, which is worse than the 5% decline during the 2008-2009 global financial crisis.
Remittances account for a significant portion of the Philippines' GDP, around 8% in 2019, making the country heavily reliant on these funds.
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Overseas Filipino worker remittances are projected to decline by 5% in 2020, a reversal from the previously projected 3% growth, due to the COVID-19 pandemic's impact on global economies and labor.
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The Philippine government has repatriated over 36,000 overseas Filipino workers (OFWs) due to the COVID-19 crisis as of June 7.
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As of last night, since May 15, the Overseas Workers Welfare Administration (OWWA) has facilitated the return of 43,000 displaced overseas Filipino workers (OFWs) to their home provinces.
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