DESPITE COVID, REMITTANCES SEEN TO HIT $31B IN 2021

DESPITE disruptions in the local economy anew due to the renewed restrictions, the local economy is expected to receive greater support from external sources—particularly from Filipino migrant workers—this year as the rest of the world tries to normalize, according to a privatesector expert.

In a recent webinar, Security Bank Chief Investment Officer Noel Reyes said they forecast full-year remittances growing by 4 percent for this year to hit $31 billion from $29.9 billion in 2020.

“Full-year remittance growth only decreased by 0.8 percent year-on-year. The performance was even better than the central bank’s revised forecast of -2 percent and an earlier forecast of -5 percent during the peak of the pandemic...with vaccination programs under way, this will continue to improve,” Reyes said.

Security Bank’s projection is in line with the government’s projection as earlier announced by the Bangko Sentral ng Pilipinas (BSP).

Latest data showed that cash remittances sent by Filipino migrant workers declined by about $45 million in January 2021 compared to its level in the same month last year.

Overseas Filipino Workers’ (OFW) remittances hit $2.603 billion in January this year, posting a 1.7-percent decline from the $2.648 billion in the same month last year. This is the second consecutive month that remittances declined after consistently being in the growth territory since September 2020.

The January remittance level is also $287 million lower than the $2.89 billion level of remittances in December of 2020.

Reyes said other potential sources of growth for this year include the passage and implementation of key economic legislation.

“Opportunities for growth can also be taken to action as the Financial Institutions for Strategic Transfer [FIST] bill has been signed by President Duterte and the Corporate Recovery and Tax Incentives for enterprises [CREATE] bill is awaiting the president’s signature,” Reyes said.