Remittances bounce back in June, but total still down in first half

ANILA - After declining for three straight months, cash remittances from overseas Filipinos grew 7.7 percent in June to reach US$2.465 billion, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

This brought total cash remittances in the January to June period to $14 billion, which was lower by 4.2 percent compared to the same period in 2019 but better than the cumulative 6.4 percent contraction seen in May, the BSP said.

The growth in remittances in June was due to a 14.2-percent rise in remittances from land-based workers. Remittances from sea-based workers fell 13.1 percent, the BSP said.

“The continued drop in sea-based workers’ remittances was due to the repatriation of many sea-based workers amid the ongoing COVID-19 pandemic,” the BSP said.

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The biggest sources of remittances in the first half were the United States, Japan, Singapore, Oman and Taiwan, which were among the countries that registered continued growth.

Remittances declined from Saudi Arabia, United Arab Emirates, Kuwait, Germany, and the UK.

The Philippines is one of the largest recipients of remittances, which power domestic consumption and economic growth.

Remittances, however, are forecast to decline further amid the global economic disruptions caused by COVID-19.

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