Remittances, a lifeline for many Filipino families, post slower growth in July

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.


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