Despite Pandemic, the Philippines Is Still One of the World's Top Recipients of Remittances Thanks to OFWs
The pandemic shook economies, closed businesses, and rendered millions unemployed, yet OFWs still managed to uphold Philippine remittances in 2020, contributing over $34.9 billion to the economy.
The Philippines is currently the fourth top remittance-receiving country in the world despite the effects of the pandemic, according to the World Bank via the Knomad report. While remittances only decreased by 0.7 percent in 2020, this is still a notable disruption in remittance inflow, which has been increasing from three percent to nine percent every year for ten years, at least until the pandemic.
In the East Asia and Pacific Region, the Philippines received the second-highest amount of remittances, after only China, despite OFW deployment falling by 70 to 75 percent.
According to the World Bank, India took the top spot as the country that boasts the largest amount of remittances at $83.1 billion, which only saw a 0.2 percent decreased from the year before. Meanwhile, China came in at second place with $59.5 billion, however its remittance economy experienced a 13 percent decrease due to the pandemic. Mexico came in third at $42.9 percent, up 9.9 percent from 2019.
Other top remittance-receiving countries include: Egypt with $29.6 billion contributing to the country's economy, Pakistan with $26.1 billion, France with $24.5 billion, Bangladesh with $21.8 billion, Germany with $17.9 billion, and Nigeria with $17.2 billion.
As borders are expected to reopen at the end of the year, 2021 and 2022 will likely see an increase in remittances and their contribution to the global economy.
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