2 photos
State of calamity for one more year
The State of calamity is now prolonged for one more year.
When someone is thinking about going to the PH anytime soon (this and next year).
Forget it!
Filipino Economy: What keeps it afloat?
Before the pandemic, remittance from Overseas Filipino Workers (OFW), revenue from tourism and revenue from BPOs, each contributed approximately 10% each to the Philippine's GDP. Contrary to expectation, the remittance in 2020 did not fall catastrophically--it fell just 0. 8% to $29.9 billion and in recent months, it has been rising. BPO industry saw a phenomenal growth and brought in $27 billion because workers could work from home. Tourism took a big hit, its revenue fell by 60%.
The robust growth of BPO and now OFW remittance gives the Philippines significant cushion to weather the revenue shortfall from tourism. After the precipitous fall of 17% in Q2'2019-20, GDP contraction has not been that bad and in fact, Q2'2020-21 saw an 11.8% increase compared to the year before (this was before Delta variant started to have effect).
Punters who have been betting that the Philippines will open its border due economic pain from shrinking tourism should not hold their breath. Economy is suffering, but not as gravely as we think.
Some sources:
[URL]https://news.abs-cbn.com/business/05/26/21/bpo-26-7b-revenues-2020-ibpap[/URL]
[URL]https://www.bworldonline.com/tourism-contribution-to-gdp-lowest-in-at-least-2-decades/[/URL]
[URL]https://asia.nikkei.com/Economy/Philippine-remittances-come-in-at-29.9bn-defying-COVID[/URL]
[URL]https://psa.gov.ph/national-accounts[/URL]