Philippine remittances seen to fall 15% in 2020

The forecast decline in 2020 Philippine remittances has been revised to 15% from 10% as overseas workers lose their jobs or see their wages reduced, the Institute of International Finance (IIF) said.

This revision reflects the significant drop in inflows to remittance-dependent countries like the Philippines, though a moderate pickup was detected in May.

The IIF projects a 15% decline for the Philippines, a country where remittances reach 10% of GDP.

As a result of lower remittances, domestic demand and imports are expected to remain under significant pressure for the rest of the year.

Data from the central bank showed a 16.2% year-on-year decrease in cash remittances in April, the largest drop since January 2001.

Overall remittances from January to April also saw a 3% decline, reaching $9.448 billion.

The Bangko Sentral ng Pilipinas had previously revised its forecast, now anticipating a 5% decline in cash remittance inflows for the year, a change from earlier projections of growth.