Philippines: Remittances nosedive in May
Remittances reached USD 2.1 billion in May, representing a 19.3% year-on-year fall. May’s drop marked the worst reading on record amid a halted global economy and the mass return of workers home due to the coronavirus pandemic. This followed April’s also sharp 16.2% decrease.
In the 12 months up to May, remittances summed USD 29.3 billion, below the USD 29.8 billion recorded in April.
Remittances, which accounted for close to 9% of GDP in 2019, are an important source of income for many Filipino families. However, the economic fallout of Covid-19 which has seen economies entering recession and unemployment rising will likely cause remittances to fall notably in 2020.