Connect with us

Hi, what are you looking for?

Economy

WorldRemit projects that 2020 OFW remittances will be level with last year’s

Contrary to previous projections of a 20%–40% drop in remittances, WorldRemit sees the year ending at almost the same level as last year’s total, with remittances from overseas Filipino workers (OFWs) either declining or increasing by 1%–2%.

“Filipinos, regardless of where they are, will continue to send money back home,” said Earl Melivo, WorldRemit’s Philippine country director. 

December is generally a peak time for remittances to the Philippines from OFWs, and WorldRemit said this trend will continue despite the COVID-19 pandemic.

“The resilience of holiday remittances to the Philippines this year can be attributed to the easing of lockdown restrictions in many countries allowing return to work for most OFWs. As well as availability of financial aid from governments in other nations,” said Mr. Melivo in a statement.  “Christmas is looking optimistic, and we are foreseeing a peak at this time.” 

According to a WorldRemit survey of 3,167 adults in the UK, the US, Canada, and Australia, 84% of those who have previously sent money to the Philippines are planning to send more money or about the usual amount for Christmas this year. Fifty-three percent will do so to help family and friends back home who have been financially impacted by the pandemic. More than a third (37%), meanwhile, want to make up for not being home in person this year.

The Middle East was the most affected send region to the Philippines this year, with the biggest declines in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) because of restrictions and repatriations, followed by the seafaring industry. Both registered double-digit declines in the second quarter.

These declines were offset, however, by increasing volumes from the US, Canada, Singapore, HK, and Taiwan, said Mr. Melivo.

“We’ve already experienced the worst,” said Mr. Melivo in a roundtable discussion. “Many of the host countries are already adapting to the new norm. Given the positive prospect of us having vaccines, we only see growth by 2021.”

International remittance to the Philippines reached $33.5 billion in 2019. These remittances come from around 223 countries, with the top 10—the United States, KSA, UAE, Singapore, UK, Japan, Taiwan, Canada, Hong Kong (HK), and Qatar—making up 78% of the volume. Land-based OFWs contributed 78% of total cash remittances to the Philippines last year, while seafaring Filipinos made up the rest of the pie.

WorldRemit serves more than 50 countries. It plans to partner with financial companies to educate OFWs and their families beyond remittances. Less than 5% of fund transfers on their platform are purposely sent for investments and savings. — Patricia B. Mirasol

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Globe Telecom, Inc. said on Friday that it had inked loan facilities with BDO Unibank, Inc. and Land Bank of the Philippines for P10...

Economy

Metro Pacific Investments Corp. (MPIC) announced on Friday that its president and chief executive officer, Jose Ma. K. Lim, will be retiring effective Dec....

Economy

REAL ESTATE developer Arthaland Corp. raised P3 billion from its Series D preferred share offering, according to the Philippine Stock Exchange, Inc. (PSE) said...

Economy

Venture capital firm Kickstart Ventures, Inc. on Friday said the Ayala group had invested in SlashNext, a company that combats phishing attacks. Kickstart manages...

Economy

Volunteerism has been a key part of Globe’s corporate culture through its various employee engagement programs. In contributing to nation-building, the company is encouraging...

Investing

The UK Government’s Flexible Working Taskforce has published practical guidance for employers designed to support hybrid working models, in a bid to help organisations...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.