Remittances exceed pre-pandemic record in 2021 as global economy reopens

MANILA, Philippines — Amid a tumultuous year in a pandemic, cash remittances sent by Filipinos overseas in 2021 exceeded 2019 levels as the global economy reopens, the Bangko Sentral ng Pilipinas reported on Tuesday.

Data from the BSP showed that money coursed through banks surged 5.1% year-on-year to $31.42 billion in 2021. The latest tally beat the $30.13 billion haul in 2019, or before the pandemic struck.

The BSP had forecast remittances to grow 6% last year. Explaining the data, the BSP said there was a last-minute boost from $2.99 billion inflows in December, which is typically a strong month for remittances.

Sought for comment, Jeremiah Opiniano, professor at the University of Santo Tomas and executive director at the Institute for Migration and Development Issues, said that the situation warrants close observation, since countries where overseas Filipino workers head to are still reopening their borders.

Neighboring countries, such as Singapore and Hong Kong, are still on alert amid the onslaught of super-contagious Omicron variant.

"We can only hope that as the world tries to move forward from this pandemic, at least three-fourths of economic activity in individual countries begin the economic rebound that countries have been searching. Let us see in the following months which destination countries begin opening their borders --either to some or to a full extent-- to foreign workers (whether seasonal or for medium-to-long term employment)," Opiniano said in a message.

Data broken down showed that in 2021, cash remittances from land-based workers improved 5.6% on-year to $24.87 billion. Money sent in by seafaring Filipinos rose 3% annually to $6.54 billion.

The BSP said 40.5% of total remittances in 2021 came from United States, while the rest came from Singapore, Saudi Arabia, Japan, United Kingdom, and United Arab Emirates, Canada, Taiwan, Qatar, and South Korea. Money sent in from these countries accounted for 78.9% of total cash remittances last year.

"Economic recovery in destination countries will not become immediate. Back in the 2007 global economic crisis, the two years that followed countries were still recovering. That scenario may happen after the World Health Organization formally calls the pandemic an endemic," Opiniano said.