Remittances seen to grow 6 percent in 2021, 4 percent next year: BSP

Warren De Guzman, ABS-CBN News

Posted at Sep 17 2021 05:44 PM

People visit a money changer and remittance business in Marikina City on January 21, 2021. Jonathan Cellona, ABS-CBN News/File
People visit a money changer and remittance business in Marikina City on January 21, 2021. Jonathan Cellona, ABS-CBN News/File

MANILA - Remittances from overseas Filipinos are expected to hit a 6-percent growth rate this year due to the lessening impact of the COVID-19 pandemic before slowing down to 4 percent in 2022, the Bangko Sentral ng Pilipinas said Friday.

Remittances, which hit 6.4 percent growth in the first half, have "certainly" helped the country bounce back, BSP's Department of Economic Research Managing Director Zeno Abenoja told reporters.

"Given the uncertainty in the environment, even though we see the global economy, global economic recovery continues to gain traction, we have decided that probably remittances will be going back to its medium term growth trend and that is about 4 percent," Abenoja said.

This year's projection would be its fastest expansion in 7 years, BSP's Department of Economic Statistics Senior Director Paolo Alegre told reporters.

Personal remittances rose 7.5 percent while cash remittances increased by 7.2 percent in 2014, Alegre said.

Exports and imports are also expected to grow this year by 14 percent and 20 percent, respectively, from the previous forecast of 10 percent and 12 percent, the BSP said.

But growth forecast for the trade of goods is slightly slower in 2022, the central bank said.

Cash remittances coursed through banks from overseas Filipinos reached $2.853 billion in July, up 2.5 percent compared to the $2.783 billion posted in the same month last year, while personal remittances rose 2.6 percent for the month, BSP data showed. 

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