The Bangko Sentral ng Pilipinas expects remittances from overseas Filipino workers recovering this year with a four percent growth after slumping by 0.8 percent in 2020 from record highs in 2019.
Remittances remained resilient despite the displacement of OFWs as host countries were affected by the COVID-19 pandemic. The Overseas Workers Welfare Administration extended assistance to some 592,000 OFWs who returned home since the repatriation started in May last year.
Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, said the higher growth in remittances could be attributed to low base or denominator as the entire Luzon was under enhanced community quarantine in April last year.
Ricafort said the increase reflects faster economic rebound in some major host countries for OFWs as increased COVID-19 vaccine rollouts helped reduce new cases leading to stronger economic recovery and creating new jobs.