Remittances post seven-month high in July
Remittances from overseas Filipinos grew in July, but not enough to offset year-to-date losses, the Bangko Sentral ng Pilipinas (BSP) reported Tuesday.
According to data released by the central bank, cash remittances — money transfers coursed through banks — totaled $2.783 billion in July, the highest so far this year.
This is higher than the $2.465 billion in June, and 7.8% higher than the $2.581 billion in July 2019.
Meanwhile, personal remittances — the sum of transfers sent in cash or in-kind via informal channels — rose by 7.6% to $3.085 billion from last year's $2.867 billion.
"The growth was attributed to the 12.6% increase in remittances from land-based workers with contracts of one year or more," the BSP said in an accompanying statement.
Such remittances rose to $2.467 billion from $2.192 billion in July 2019, while remittances from sea-based workers fell by 9.2% to $557 million from $613 million.
The latest figures brought the year-to-date cash remittances down by 2.4% to $16.802 billion from $17.219 billion, and personal remittances down 2.4% to $18.658 billion from $19.119 billion.
"Year-to-date total remittances contracted by 2.4%, lower than the BSP's revised forecast of -5% this year," BSP Governor Benjamin Diokno told reporters in a mobile message.
"The lower actual decline is a huge departure from many pessimistic forecasts that OF remittances will plunge by not less than 20% this year as a result of the pandemic," he added.
By country sources, remittances for the seven-month period registered growth in countries such as the United States, Japan, Singapore, Qatar, and Taiwan.
Meanwhile, declines were noted in Saudi Arabia, UAE, Germany, Kuwait, and the United Kingdom.
The United States accounted for 40.1% of the year-to-date remittances, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, United Arab Emirates, Canada, Qatar, Hong Kong, and Taiwan.
Combined remittances from these countries accounted for 78.9% of total cash remittances. —KG, GMA News