The Bangko Sentral ng Pilipinas (BSP) has upgraded its growth forecast for remittances to six percent this year from its previous target of four percent as major economies began reopening.
The upgrade was due to increased global demand for foreign workers as host economies transition to recovery mode; and enhanced access to digital financial services to facilitate remittance transfers.
For 2022, however, the BSP sees growth in remittances to revert to four percent level mainly due to uncertainties.
BSP managing director Zeno R. Abenoja, nevertheless, remains confident that
remittances will recover after contracting by 0.8 percent in 2020 due to the impact of the COVID-19 pandemic.
“Sustained strengthening of advanced economies in 2022 bode well for the country’s prospects for trade and investments as well as overseas Filipinos remittances,” the BSP said.
In the first eight seven months, cash remittances rose 5.8 percent to $17.77 billion.