Remittances to fuel private consumption in 2021

Remittances from overseas Filipino workers are expected to accelerate this year, fueling a private consumption-led economic rebound, according to FocusEconomics.

The Barcelona-based think tank said OFW remittances would recover this year as pandemic mobility restrictions are lifted.

FocusEconomics said, “Remittances should strengthen in tandem with labor markets abroad, which should feed through to stronger private consumption at home.”

The Bangko Sentral ng Pilipinas sees remittances rebounding this year, with a growth of four percent after contracting by two percent this year as hundreds of thousands of OFWs were displaced due to the global health crisis.

Latest BSP data showed personal remittances as well as household-to-household transfer between Filipinos who have migrated abroad and their families in the Philippines, declined by one percent to 27.4 from 27.6 billion dollars in the same period last year.

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