BSP: Drop in Remittances to Pull Down GDP by 0.4%

The Bangko Sentral ng Pilipinas (BSP) projects a 5% contraction in remittances this year due to job losses and repatriation of overseas Filipino workers (OFWs), which could slow down the GDP by 0.4%.

Governor Benjamin Diokno noted that the estimates took into account the increase in unemployed OFWs, particularly those sea-based.

The BSP expects a recovery timeline from host countries will impact remittances further, with uncertainties around economic disruptions in tourism and oil production industries.