Remittances plunge by nearly 20% in May

Remittances fell by nearly 20% in May to mark the third consecutive month of a year-on-year contraction, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

Data released by the central bank showed that personal remittances — the sum of transfers sent in cash or in-kind via informal channels — totaled $2.341 billion in May.

This is 19.2% lower than the $2.896 billion inflows the same month last year, but higher than the $2.276 billion in April.

"This is the third consecutive month that personal remittances posted year-on-year contraction amid the adverse effects of the COVID-19 pandemic on global economic activity, travel, and employment, resulting in the repatriation or deferment of employment of many OFWs," the central bank said in an accompanying statement.

There were an estimated 42,000 overseas Filipino workers who returned to the Philippines in May and June amid the global health crisis.

Meanwhile, cash remittances — money transfers coursed through banks — for the month declined by 19.3% to $2.106 billion.

This compares with the $2.609 billion in May 2019, and the $2.046 billion in April this year.

Year-to-date, personal remittances fell 6.4% to $12.805 billion and cash remittances also 6.4% to $11.554 billion.

The United States was the biggest source of remittances for the five-month period, accounting for 39.4%.

It was followed by Singapore, Saudi Arabia, Japan, the United Kingdom, United Arab Emirates, Canada, Hong Kong, Qatar, and Taiwan which accounted for 78.8% of total cash remittances. —KBK, GMA News