IN EARLY APRIL, the National Economic Development Authority projected that the inflow of remittances sent back home by overseas Filipino workers (OFWs) will plunge by around 30% this year due to the Covid-19 pandemic. This is because almost half of the total number of OFWs are employed in sectors hardest hit by the pandemic in various countries.

This poses a huge challenge to the local economy especially that it is heavily reliant on remittances. Last year, OFW remittances hit a record high of P1.68 trillion, which is equivalent to 10% of the gross do­mes­tic pro­duct in the same year. OFW remmitances are among the regime’s primary source of funds to sustain local consumption and resolve the ever-increasing deficit in its balance of payments.