Money sent home by Filipinos abroad continued to grow in July, albeit at a slower pace than June, showing their time-tested resilience as the global economy slowly reopens from lockdowns.
Cash remittances sent through banks inched up 2.5% year-on-year to 2.8 billion dollars in July, the Bangko Sentral ng Pilipinas reported. However, that was a slower annual pace than 7% recorded in June.
In the first seven months, cash remittances went up 5.8% on-year to 17.8 billion dollars.
Remittances historically support the Philippines’ consumption-driven economy, especially since money sent home by migrant Filipinos boosts the spending capacity of their families here.
At the same time, remittances serve as a key dollar source for the Philippines. For this year, the BSP forecast cash remittances to grow 4%. If realized, it would reverse last year’s 0.8% contraction when the pandemic triggered massive job losses.