Remittances down 0.8% in 2020

The contraction of remittances to the Philippines was narrower than the anticipated decline in 2020 amid the impact of the coronavirus disease 2019 (COVID-19) pandemic, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

Data released by the central bank showed that cash remittances — money transfers coursed through banks — fell by 0.4% to $2.890 billion in December from $2.902 billion the same month in 2019.

This brought the year-to-date cash remittances to $29.903 billion, a decline of 0.8%, versus $30.133 billion in 2019, reflecting a narrower decline than the 2% drop earlier anticipated.

Increases were reported in inflows from the United States (US), Singapore, Canada, Hong Kong, Qatar, South Korea, and Taiwan, while decreases were registered in Saudi Arabia, Japan, the United Kingdom (UK), the United Arab Emirates (UAE), Germany.

Most of the inflows came from the US< Singapore, Saudi Arabia, Japan, the UK, the UAE, Canada, Hong Kong, Qatar, and South Korea which accounted for 78.6% of the total cash remittances during the period.

Meanwhile, personal remittances — the sum of transfers sent in cash or in-kind via informal channels — fell by 0.3% to $3.205 billion in December from $3.216 billion a year earlier, bringing the year-to-date down 0.8% to $33.194 billion from $33.467 billion previously. — DVM, GMA News