Remittance growth from overseas Filipino workers to slow amid COVID-19

Monday 20 April 2020 09:29 CET | News

Cash remittances from overseas Filipino workers (OFWs) could drop as much as USD 6 billion in 2020.

This is caused by the fact that up to 400,000 Filipinos could lose their jobs amid a global recession due to the coronavirus disease 2019, according to a paper published by the Ateneo de Manila University Department of Economics and Ateneo Centre for Economic Research and Development (ACERD).

Furthermore, the paper said a drop in remittances will also take a toll on consumption, which could drop 20 to 40%. Cash remittances will decline from USD 30 billion in 2019 to about USD 24 in 2020. The projection is based on a worst-case scenario where 20% of all OFWs are affected by the pandemic.

Moreover, the paper said 300,000 to 400,000 OFWs may be hit by layoffs, pay cuts, and even repatriation. Cash remittances fuel household consumption that makes up 70% of the country’s gross domestic product.
More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cash remittances, payments , cash, COVID-19, study, Philippines
Categories: Banking & Fintech
Countries: Philippines
This article is part of category

Banking & Fintech