Remittance prospects saw positive despite Delta variant

THE REMITTANCE INDUSTRY'S OUTLOOK IS POSITIVE, despite the threat of the coronavirus Delta variant, as vaccination programs gain traction in major economies that are key worker destinations, according to a remittance industry executive.

PHILIPPINE STAR/ KRIZ JOHN ROSALES

“Because of the vaccine, I believe we are less likely to revert to the early stages of the pandemic when everyone is shut down. That is not likely to happen, in my opinion. “We will not be in the position (we were in) in March 2020,” UniTeller Philippines President Noel C. Cristal said in an online interview.

According to the Bangko Sentral ng Pilipinas, cash remittances increased 7% year on year to $2.638 billion in June (BSP). Inflows increased by 6.4 percent to $14.918 billion in the first half of the year.

In 2020, cash remittances fell 0.8 percent to $29.903 billion. The total of $30.133 billion in 2019 was a record.

Inflows from the United States, the world's largest remittance source, have been boosted by Washington's massive stimulus programs, according to Mr. Cristal.

“The government provided assistance programs, and, of course, Filipinos are always there for the family. When they get some money, their first priority is to support their families back home,” he explained, noting that the United States is Uniteller's main market.

Remittances fuel household spending, which accounts for roughly 70% of the Philippine economy.

According to the BSP, inflows from the United States increased by 7.5 percent in the first half to $5.982 billion.

Singapore has surpassed Saudi Arabia as the Philippines' second-largest source of remittances. Inflows from Singapore totaled $1.035 billion in the first six months, compared to $832.614 million from Saudi Arabia.

This development reflects the additional weight of Filipino workers' earnings in Singapore, according to Mr. Cristal, noting that Filipinos in Singapore include a large contingent of professionals, whereas those in Saudi Arabia work primarily in construction and services, which were hit hard by the pandemic.