Remittances set to plunge this year
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.